According to sources, BlackRock Bitcoin ETF, formally known as the iShares Bitcoin Trust (IBIT), has quickly become BlackRock’s third-biggest revenue-making ETF in just 18 months of its launch.
The BlackRock IBIT ETF now manages around $76 billion in assets, showing strong interest from big investors in regulated Bitcoin products.
The ETF’s annual revenue, estimated $191 million, is now behind only the iShares Russell 1000 Growth ETF (IWF) and the iShares MSCI EAFE ETF (EFA).
This puts the BlackRock Bitcoin ETF just $9 billion in assets away from becoming BlackRock’s top revenue-generating fund.
BlackRock IBIT Sees Explosive Growth on Institutional Demand
The BlackRock IBIT ETF was launched in January 2024 after getting approval from the U.S. Securities and Exchange Commission.
It quickly broke records and became the fastest ETF to attract over $2 billion in inflows within just its first week. In only six months, IBIT’s assets grew beyond $50 billion.
Industry experts describe this growth as remarkable, highlighting the rising demand from hedge funds, corporate treasuries, and wealth advisors.
Michael Saylor, Chairman of MicroStrategy, agreed with this view and predicted that IBIT will soon become the top ETF among BlackRock’s funds.
He said, “The strong momentum behind this fund shows it could soon overtake even the biggest traditional equity ETFs.”
Experts See Parallels With Gold ETF Boom
The success of the BlackRock Bitcoin ETF is being compared to the early growth of gold-backed ETFs in the 2000s. Experts believe Bitcoin is now being accepted by large investors in the same way gold was back then. Eric Balchunas, a senior ETF analyst at Bloomberg, said IBIT’s growth is more than just impressive.
He said it shows how a crypto fund is now becoming a regular part of many investment portfolios, similar to how gold became widely accepted about twenty years ago.
The main reason for the fund’s popularity is its simple approach. Investors can get Bitcoin exposure without worrying about complicated storage or custody issues.
Since it is a regulated product, it has gained more trust, drawing interest from cautious institutions and everyday investors looking for new opportunities.
IBIT’s Edge Over Competitors
Currently, the BlackRock IBIT ETF is just $20 million behind IWF and $16 million behind EFA in revenue generation. Its rapid rise has placed it far ahead of most other ETFs among BlackRock’s more than 1,100 funds.
Market experts point out that the ETF’s continued inflows show strong interest in Bitcoin and highlight BlackRock’s smart strategy.
One financial strategist said, “This is not just a short-term trend. IBIT is turning into an essential choice for investors who are curious about crypto.” Recent reports suggest that IBIT might soon surpass its closest competitors and become BlackRock’s leading ETF.
Experts believe this growth is driven by increasing confidence among large investors in digital assets, particularly as regulations around crypto continue to improve
Conclusion
The growth of the BlackRock Bitcoin ETF shows how investment trends are changing. With $76 billion in assets and $191 million in yearly earnings, the iShares Bitcoin Trust (IBIT) is set to change BlackRock’s ETF rankings.
As crypto rules become clearer and more people seek Bitcoin-related products, IBIT is likely to keep growing. Many investors now see it as strong proof that Bitcoin has firmly entered the traditional financial world. The BlackRock Bitcoin ETF is not just breaking records, it’s making history.
Summary
BlackRock Bitcoin ETF, called the iShares Bitcoin Trust (IBIT), has quickly become BlackRock’s third-largest revenue ETF, managing around $76 billion in assets. It earned about $191 million yearly.
Launched in January 2024, IBIT gained record inflows and strong demand from large investors. Experts say its rise is similar to gold ETFs in the past. Many believe IBIT could soon become BlackRock’s top ETF, showing Bitcoin’s growing role in mainstream finance
FAQs
1. What is the current AUM of BlackRock IBIT ETF?
Around $76 billion.
2. How much revenue has IBIT generated annually?
Approximately $191 million.
3. How fast did IBIT attract $2 billion in inflows?
Within its first week.
4. Who predicts IBIT could become BlackRock’s top ETF?
Michael Saylor, Chairman of MicroStrategy.
5. What kind of investors are driving IBIT’s growth?
Hedge funds, corporate treasuries, and wealth advisors are fueling BlackRock’s Bitcoin ETF
Glossary
IBIT: BlackRock Bitcoin ETF, offering regulated exposure to Bitcoin.
AUM: Total market value of assets managed by the fund.
Spot Bitcoin ETF: A fund that holds actual Bitcoin instead of futures contracts.
Custody Issues: Challenges of securely storing and managing cryptocurrencies.
Gold ETF Boom: A surge in gold-backed ETFs in the 2000s, used here as a comparison to IBIT’s growth.
Sources
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