$50 Billion in 11 Months – Blockchain News, Opinions, TV and Jobs

BlackRock’s iShares Bitcoin Trust broke all records and turned out to be the most successful ETF ever launched, reaching $50 billion in assets within 11 months. Launched on January 11, 2024, the ETF has outperformed all 1,400 other ETFs launched by BlackRock, securing its position as a game-changing financial product.

“Greatest launch in ETF history,” Nate Geraci, head of ETF Shop, said in a nod, and analysts shared his view. According to a Bloomberg reportIBIT’s rapid rise outpaces any ETF in any asset class.

IBIT growth outpaces European ETFs by decades

The fund’s assets under management equal the total of more than 50 European market-focused ETFs, some of which were launched more than two decades ago, said Todd Sohn, managing director at Strategas Securities.

“IBIT growth is unprecedented,” said James Seyphart, an analyst at Bloomberg Intelligence. “It’s the fastest ETF to achieve significant milestones.” If the fund maintains that pace, it will generate revenue of $112 million annually, according to Seyphart, who based his forecast on an expense ratio of 0.25% and its current asset level.

This means that IBIT’s success occurs at the right time when many USA Bitcoin ETFs are seeing inflows into their funds. Black Rock’s US Bitcoin ETF and IBIT saw net inflows of $35. $66 billion This year, Black Rock’s IBIT was in the lead with $37.31 billion in funds taken.

This huge influx also contributed to the price of Bitcoin surpassing the $100,000 mark for the first time, partly due to… Black Rock It is a famous company with total assets under management of $11 trillion.

IBIT dominance has created a ripple effect across the entire ETF market, and gold ETFs have become a big casualty in this scenario. Gold ETFs are generally considered a haven, but this is the first time in six months that such massive outflows have been observed.

With a market size of $274 billion, gold mutual funds still represent a large part of the investment landscape. However, analysts believe that IBIT could soon outperform even the largest gold ETFs, SPDR Gold Shares, if the price of Bitcoin continues to rise.

Nate Geraci punctuated this trend with the following chart comparing the trajectories of gold ETFs and Bitcoin ETFs in the US. Gold ETFs were first made available to investors in 2004, while Bitcoin ETFs became available in 2024. In chart, Bitcoin is increasingly considered a viable alternative to gold, nicknamed “digital gold.”

One of the most ridiculous charts you will ever see…

Assets in Spot Gold ETFs vs. Bitcoin ETFs.

Gold ETFs were launched in 2004.

Bitcoin ETFs in 2024

via @glxyresearch pic.twitter.com/eJo7Db9kb3

– Nate Geraci (@NateGeraci) December 28, 2024

BlackRock’s IBIT not only changed the game in the ETF market, but also brought Bitcoin to a new level in the global financial landscape. Its unprecedented growth and the impact on prices Bitcoin This has made the ETF a pivotal force for mainstream cryptocurrency adoption.

While interest in IBIT continues to build momentum, some very serious assumptions are being made regarding the long-term prospects of traditional finance and the more modern cryptocurrency market.