BlackRock’s iShares Bitcoin Trust (IBIT) has hit a new high, becoming the largest Bitcoin Exchange-Traded Fund (ETF) in the US
In just 18 months since its launch in January 2024, IBIT has accumulated over 700,000 BTC, now worth over $80 billion, accounting for more than 55% of all Bitcoin held by US Spot ETF.
The numbers are daunting. On July 3, IBIT held 698,919 BTC. A few days later, net inflows exceeded 1,500 btc had exceeded 700,000. According to the BlackRock website, by July 10th it was 706,000 BTC.
Nate Geraci, president of Novadius Wealth Management, said on X that it was “silly” that the fund attracted this in such a short time.
IBIT’s growth has not only become the largest Bitcoin ETF by AUM, but it has also become one of BlackRock’s top performance funds.
According to Bloomberg ETF analyst Eric Bulknas, it is currently the third-highest revenue-generating ETF in BlackRock’s 1,197 fund lineup, with just $9 billion since becoming number one.
As of early July, US spot Bitcoin ETFs held around 1.25 million btc, roughly 6% of their total supply.
IBIT’s 56% share is more than twice the closest competitors. Fidelity’s FBTC has over 200,000 BTC, and Grayscale’s GBTC has dropped to about 184,000 BTC after previously exceeding 600,000.
BlackRock’s advantage is not limited to size. We are also leading trading volume. IBIT regularly accounts for around 80% of the daily volume among Bitcoin ETFs. On July 10th, its trading volume was $5 billion, twice the average volume.
IBIT’s success shows how attractive Bitcoin has become among institutional investors. Asset managers, businesses and wealthy individuals are steadily reaching Bitcoin as their assets gain legitimacy through ETFs.
Bulk eggplant calls volume spikes “big boy flow.” These flows are happening as Bitcoin is surged beyond $118,000 and slightly embarrassed its $120,000 target.
Bitcoin ETFs inflow to the US have reached more than $75 billion since 2024 (excluding GBTC outflows), while BlackRock’s IBIT accounts for more than $53.4 billion. On July 10th, BlackRock was once again at $1.175 billion in net inflows into spot ETFs.
BlackRock’s Bitcoin funds are not simply growing rapidly. It’s more profitable than BlackRock’s biggest traditional fund. BlackRock’s S&P 500 ETF (IVV) AUM has a $624 billion AUM, but IBIT generated $187.2 million in annual fees, beating IVV’s $187.1 million.
Bitcoin is also beginning to rival gold as a safe. The SPDR Gold Shares ETF (GLD) is the largest gold ETF, with over $100 billion in AUM, but it took GLD 15 years to hit this milestone. ibit did it within two years.
Several macro factors have driven the growth of Bitcoin. Interest rate reductions, geopolitical stability and regulatory clarity after approval of the SEC SPOT Bitcoin ETF give some names.
Analysts are hoping for more growth with a total Bitcoin ETF forecast of $200 billion by the end of 2025.
