BlackRock's Bitcoin ETF Surges to $10B in Seven Weeks, Wins 'Best New ETF' Award
BlackRock's iShares Bitcoin Trust (IBIT) has made a meteoric rise since its January launch, reaching $10 billion in assets in just seven weeks, a record for any ETF. This rapid growth has been recognised with the 'Best New ETF' award at the etf.com awards.
The U.S. spot Bitcoin ETF market has seen a surge in interest, with over $37 billion in total net inflows and combined assets under management exceeding $100 billion since January. This growth coincides with Bitcoin breaking above $95,000, driven by factors such as former President Trump's signals on reducing Chinese import tariffs, new SEC Chairman Paul Atkins' pro-crypto stance, and expectations of Federal Reserve rate cuts in mid-2025.
Michael Saylor predicts IBIT will become the world's largest ETF within a decade. To achieve this, Bitcoin must become a globally institutionalized asset class, maintain strong capital inflows, and grow its overall market capitalization. IBIT has already accumulated $1.16 billion in Bitcoin purchases over three days in late April, managing $54.2 billion in assets. It would need to surpass the Vanguard S&P 500 ETF (VOO) to reach the top spot.
BlackRock's aggressive accumulation strategy signals growing confidence in the asset class. On Thursday alone, U.S. spot Bitcoin ETFs recorded $442 million in net inflows, pushing Bitcoin above $95,000.
IBIT's rapid growth and recognition as the 'Best New ETF' highlight the increasing acceptance of Bitcoin as a mainstream investment. However, becoming the world's largest ETF within ten years will require sustained growth and institutionalisation of the Bitcoin market. While possible, as acknowledged by Eric Balchunas, it will depend on several factors playing out in Bitcoin's favour.
