Key Points
- BlackRock’s Bitcoin Fund surpasses $33 billion, outpacing its gold ETF.
- Launched in 2024, the fund is drawing in record inflows.
- Investor confidence surges post-election, boosting crypto ETFs.
- Bitcoin Fund ranks among the top 2024 ETF launches by inflows.
BlackRock Bitcoin Fund has surpassed the company’s iShares Gold Trust, reaching over $33 billion in assets since its launch in January. In under a year, this Bitcoin ETF has accumulated more assets than the iShares Gold Trust, which has held a stable position in BlackRock’s offerings since 2005.
According to industry analysts, this leap reflects a growing trend of investors prioritizing digital assets over traditional safe-haven investments like gold.
Nate Geraci, president of The ETF Store, described the fund’s swift rise as “unprecedented.” This rapid success shows Bitcoin’s appeal across investment strategies and represents an accelerated acceptance of digital assets in mainstream finance.
Bitcoin’s performance this year has drawn significant inflows, capturing the attention of both institutional and individual investors as they seek alternatives to traditional assets.
iShares Bitcoin ETF (IBIT) has now surpassed iShares Gold ETF (IAU) in assets…
Did this in 10mos.
IAU launched in January 2005.
Absolutely wild. pic.twitter.com/dLi16A28Gc
— Nate Geraci (@NateGeraci) November 8, 2024
Record Inflows Sparked by Political Shifts
The growth of BlackRock’s Bitcoin Fund coincided with a boost in crypto markets following the recent U.S. presidential election. Seen as favorable for crypto-friendly regulation, Donald Trump’s election victory sent waves of optimism through the digital asset market.
On November 6, a record number of inflows pushed the Bitcoin Fund to new trading highs, with over $1.1 billion flowing into the fund on November 7 alone, according to data from Bloomberg ETF analyst Eric Balchunas.
This spike reflects investors’ increasing appetite for Bitcoin and other digital assets, and some industry analysts suggest that this trend will encourage regulatory bodies to approve more cryptocurrency-focused funds.
With Bitcoin reaching consecutive all-time highs above $76,800, the stage is set for potentially even more fund growth and inflows in the coming months.
Bitcoin ETFs Dominate Top Launches in 2024
Throughout 2024, Bitcoin ETFs have been consistently among the year’s most successful ETF launches. Of around 400 new ETFs introduced, Bitcoin funds are leading the inflow rankings, with BlackRock’s Bitcoin Fund at the forefront.
The demand has paved the way for a new era of diversified digital asset funds. In addition to Bitcoin, several pending ETF applications for altcoins like Solana and XRP show potential, with filings for index funds designed to offer broader crypto market exposure.
If these ETFs receive regulatory approval, investors could access a wider range of cryptocurrencies, appealing to conservative and growth-oriented investors.
BlackRock’s Bitcoin Fund reaching such a milestone so quickly emphasizes the strong demand for digital assets as part of a diversified investment portfolio.
