BlackRock's IBIT ETF Soar to $10 Billion, Setting New Record

BlackRock’s IBIT ETF Soars to $10 Billion, Setting a New Speed Record

Moreover, the global bitcoin investment scene has seen unprecedented activity, with February recording the highest absorption of BTC.

Written By:
Kelvin Munene

Last updated: March 2, 2024 12:16 PM

Published March 1, 2024 9:22 PM

Last updated: March 2, 2024 12:16 PM

Published March 1, 2024 9:22 PM

In seven weeks since its debut, BlackRock’s IBIT spot bitcoin ETF has taken the investment world by storm, reaching $10 billion in assets under management (AUM). This rapid rise marks a step in accepting cryptocurrency in mainstream investment

The rally to $10 billion for IBIT has been remarkable, with the fund becoming the quickest to reach this esteemed status. According to Bloomberg’s ETF expert Eric Balchunas, 78% of this growth comes from investor inflows, showcasing the ETF’s appeal in the market.

$IBIT the newest member of the $10 Billion Club, fastest ever to get there.. Only 152 ETFs in this club (out of 3,400) incl $GBTC. First $10b so touch bc so much has to come from flows (in $IBITs case 78% of aum is flows). Second $10b easier bc mkt appreciation bigger variable pic.twitter.com/FwysL4GSGk
— Eric Balchunas (@EricBalchunas) March 1, 2024

This is particularly noteworthy given that among the vast ocean of over 3,400 ETFs, a mere 150 boast an AUM exceeding $10 billion, most of which have had the benefit of a decade or more to reach this peak.

The stark contrast between IBIT’s inflows and the outflows from Grayscale’s GBTC fund is signaling a shift in investor preference towards ETFs like IBIT that offer lower fees and clearer regulatory frameworks. This realignment is underscored by the significant reduction in GBTC’s holdings, highlighting a broader trend towards spot bitcoin ETFs.

Reflecting on Market Dynamics

The interplay between inflows into IBIT and outflows from GBTC encapsulates the evolving dynamics of the Bitcoin investment market. This movement between the two funds mirrors wider market trends and the rising interest in cryptocurrency investments.

Moreover, the global bitcoin investment scene has seen unprecedented activity, with February recording the highest absorption of BTC, signaling growing investor confidence in digital assets. This is further evidenced by the robust trading volumes of U.S. spot bitcoin ETFs, underscoring the sustained interest from both individual and institutional investors.

119,604 BTC was absorbed by BTC investment vehicles globally in February.

A new monthly high, surpassing the GBTC "arb" peak flow from December 2020. pic.twitter.com/q9TDLLlhL9
— Vetle Lunde (@VetleLunde) March 1, 2024

BlackRock’s IBIT ETF has ignited a shift in how cryptocurrency is viewed and invested. As the digital asset landscape continues to evolve, the impact of this rapid growth and investor interest in bitcoin ETFs like IBIT will undoubtedly influence the trajectory of cryptocurrency investments for years to come.