BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has reached an incredible milestone—surpassing $50 billion in assets in just 228 days. This is more than five times faster than any other ETF before it. In fact, BlackRock’s other big fund, the iShares Core MSCI EAFE ETF, took over 1,300 days to reach the same amount. 

Bitcoin’s Big Breakthrough and IBIT’s Rocket Growth

Bitcoin has gone above 140% this year—especially from big institutional investors. The launch of IBIT has made it easier for these investors to tap into Bitcoin’s potential without dealing with the complexities of buying, holding, or trading the cryptocurrency directly. IBIT has quickly become a favorite among big-money investors looking for a piece of the Bitcoin action.

Ki Young Ju, Founder of CryptoQuant points out that fresh capital is driving Bitcoin’s price rise and ETF prospects. As the realized cap grows, Bitcoin’s ceiling price has increased from $129K to $146K in just 30 days. At $102K, Bitcoin is still far from a bubble, needing a 43% surge to reach the level typically considered overvalued.

Bitcoin ETFs: A Bridge for Traditional Investors

Spot Bitcoin ETFs, like BlackRock’s IBIT, offer investors a simple way to get exposure to Bitcoin’s price movement. These ETFs were approved by the U.S. SEC earlier this year, ending years of regulatory pushback. Now, instead of worrying about how to store and secure Bitcoin, investors can just buy shares of an ETF that tracks Bitcoin's value. This has opened the doors for billions of dollars to flood into Bitcoin from the world of traditional finance.

Nate Geraci, President of the ETF Store, recently pointed out the impressive success of BlackRock’s IBIT, saying it has already surpassed the iShares Gold ETF (IAU), which launched in 2005. He mentioned that if IBIT were BlackRock’s only ETF, it would already be among the top 15 ETF issuers in the world. Despite some critics doubting the demand for a Bitcoin ETF, the rapid growth of IBIT has proven them wrong, exceeding expectations. 

Moreover, Bitcoin, a digital currency that’s only been around for a little over a decade, is now more popular in BlackRock’s investment portfolio than gold, a traditional store of value.

A Growing Trend with Bitcoin ETFs

The Bitcoin ETF market is only getting stronger. Just this week, Bitcoin ETFs saw an incredible $676 million in inflows in a single day. This is pushing the total assets in U.S. Bitcoin ETFs to more than $104 billion, which is nearly equivalent to the amount of Bitcoin held by the cryptocurrency’s mysterious creator, Satoshi Nakamoto.

The political climate is also shifting in Bitcoin’s favor. With President-elect Donald Trump promising pro-crypto policies, like a U.S. Bitcoin reserve, and the appointment of crypto-friendly SEC officials, analysts expect the regulatory landscape to get even more favorable for Bitcoin and ETFs like IBIT.