The BlackRock Bitcoin ETF (IBIT) continues to break records, hitting major milestones in less than a year since its launch in January 2024. With over $48 billion in assets under management (AUM) and more than 500,000 Bitcoin held, IBIT is now one of the top three ETF launches for 2024. This rapid growth has made IBIT a dominant player in the cryptocurrency market, catching the attention of market analysts and investors alike.
IBIT Hits 500,000 Bitcoin Milestone
The BlackRock Bitcoin ETF reached an impressive new milestone last week, surpassing 500,000 BTC in its holdings. With the current Bitcoin price hovering around $96,000, this puts IBIT’s total holdings at a staggering $48 billion, representing approximately 2.38% of Bitcoin’s total supply. This massive accumulation has cemented IBIT’s position as a key player in the crypto space.
Notably, IBIT has outpaced even MicroStrategy, which holds 402,100 BTC, and has surpassed the performance of traditional ETFs, such as the iShares Gold ETF (IAU), which debuted in 2005. As BlackRock continues to draw in new investments, analysts predict that the ETF could reach nearly 1 million BTC in the coming years. The rapid adoption of IBIT highlights the growing institutional interest in Bitcoin, especially among traditional investors seeking exposure to digital assets.
Nate Geraci, President of the ETF Store, pointed out that if IBIT were BlackRock’s only ETF, it would rank among the top 15 global ETF issuers. He emphasized that the ETF’s explosive growth has defied earlier predictions, with many experts downplaying demand for a Bitcoin ETF. However, the numbers speak for themselves, as IBIT continues to outperform expectations.
iShares Bitcoin ETF (IBIT) now approaching $50bil in assets…
— Nate Geraci (@NateGeraci) December 4, 2024
*$50bil* in less than a yr.
If IBIT were BlackRock’s only ETF, they would be a top 15 issuer.
IBIT has blown by iShares Gold ETF (IAU) which launched in *2005*.
IBIT holds > 500,000 btc.
“No demand” they told me.
Traditional Funds Increasing Exposure to IBIT
In addition to the impressive growth of IBIT, BlackRock’s traditional funds have also increased their exposure to the Bitcoin ETF, signaling growing confidence in the long-term potential of the cryptocurrency. The success of IBIT has sparked interest in Bitcoin as a legitimate investment asset, especially for institutions that were previously hesitant to enter the volatile market.
Is Bitcoin Heading for $100K?
With Bitcoin’s current price at $96,444, many are eagerly watching the $100K mark, which could be the next major milestone. Despite recent subdued trading volumes and a sell-wall at $100K, analysts are optimistic about Bitcoin’s future. The recent reduction in selling pressure, as noted by Glassnode, suggests that traders are holding positions in anticipation of a significant price movement. The latest Glassnode data shows a 42% decline in daily realized profits, dropping from $481 million to $277 million, indicating that long-term holders are reluctant to sell their Bitcoin, possibly in expectation of higher prices ahead.
As the BlackRock Bitcoin ETF continues to attract substantial investment, and with Bitcoin nearing new price highs, the cryptocurrency market may be on the brink of another major surge. If the current pace of adoption continues, IBIT could become an even more influential player in the global financial ecosystem, with Bitcoin reaching unprecedented price levels in the near future.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
