Bitcoin Boom Goes Mainstream—Blackrock’s IBIT Becomes the Fastest Growing ETF of All Time

On Monday, Bloomberg spotlighted Blackrock’s Ishares Bitcoin Trust, or IBIT, as the “greatest launch” in exchange-traded fund (ETF) history.

Bitcoin Takes Center Stage as Blackrock’s IBIT Breaks Records

Blackrock, the world’s largest asset manager, reached an all-time peak of $11.5 trillion in assets under management by the end of Q3 2024, thanks to significant net inflows and favorable market conditions. As the year wraps up, Bloomberg quoted Nate Geraci, president of The ETF Store, praising the Ishares Bitcoin Trust (IBIT) as the “greatest launch in ETF history.”

Bloomberg reports that the IBIT fund now boasts more than $50 billion in bitcoin, with its holdings valued at approximately $52.4 billion as of Dec. 30—amounting to an impressive 552,554.76 BTC. Shukla summed it up in the report, saying, “Simply put, no ETF has ever had a better debut.” Since Jan. 11, 2024, Blackrock’s IBIT has attracted $37.31 billion in positive net inflows.

Source: Bloomberg’s Dec. 30, 2024 report. Collectively, 12 funds have gathered $35.66 billion in cumulative net inflows, with Grayscale’s Bitcoin Trust (GBTC) acting as a counterbalance. While IBIT and ten other ETFs have pulled in positive net inflows since their launches, GBTC has shed $21.35 billion after transitioning from an over-the-counter (OTC) traded product to a public ETF. One might even say that GBTC’s outflows this year set a record of its own, making it a trend worth noting.

Blackrock’s exchange-traded products (ETPs) are some of the world’s most dominant ETFs and they include Ishares Core S&P 500 ETF (IVV), Ishares Core MSCI Total International Stock ETF (IXUS), Ishares Core U.S. Aggregate Bond ETF (AGG), and Ishares Semiconductor ETF (SOXX). “IBIT’s growth is unprecedented,” Bloomberg Intelligence analyst James Seyffart details in the report on Monday.

Seyffart added:

It’s the fastest ETF to reach most milestones, faster than any other ETF in any asset class.

Gazing into the future, market watchers are eager to spot changes in how savvy investors weave bitcoin into their varied investment baskets. The whirlwind of activity highlights the transformation in views on what was once a specialized OTC market, boasting only GBTC and European ETPs, sparking curiosity about whether other financial behemoths will keep fueling this colossal demand. These scenarios add a new twist to an asset class that’s growing more clout, aiming for a wider embrace in the world of international finance. It’s a sign of skyrocketing fascination.