BlackRock Bitcoin ETF (IBIT) surpasses $50B AUM milestone in record time
BlackRock ETF reshapes the Bitcoin investment market
he BlackRock Bitcoin ETF (IBIT) continues its record-breaking trajectory, nearing $50 billion in assets under management (AUM) just a year after its launch.
This extraordinary growth has positioned IBIT among the top three ETF launches of 2024, according to CoinGape.
A remarkable milestone
Launched in January 2024, IBIT recently surpassed a significant milestone, accumulating 500,000 BTC, which accounts for 2.38% of Bitcoin’s total supply. At the current Bitcoin price of $96,000, the ETF has amassed $48 billion in AUM. Analysts predict that IBIT could hold up to 1 million BTC in the coming years, given its rapid adoption rate.
The ETF’s growth highlights its significant influence on the cryptocurrency market. Its holdings have even exceeded those of MicroStrategy, which owns 402,100 BTC as part of its corporate treasury. IBIT’s rapid ascent has drawn comparisons to other notable ETFs, with Nate Geraci, President of the ETF Store, pointing out that it has already outperformed the iShares Gold ETF (IAU), launched in 2005.
“If IBIT were BlackRock’s only ETF, it would rank among the top 15 issuers globally,” Geraci noted. The explosive growth of IBIT has silenced skeptics who initially doubted the demand for Bitcoin-focused financial products.
Bitcoin’s performance and market dynamics
Bitcoin is currently trading at $96,720, with a market capitalization of $1.91 trillion. However, trading activity has slowed in recent weeks as the cryptocurrency faces resistance at the $100,000 level. This hesitation is largely attributed to profit-taking by long-term holders.
Despite the selling pressure, daily profit realization has dropped significantly. The BTC market has seen a decline in daily realized profits sent to exchanges, falling to $277 million—a 42% decrease from the $481 million peak on November 16. This suggests that traders are increasingly holding their positions in anticipation of another bullish move.
Broader expansion
BlackRock’s influence extends beyond cryptocurrency. The asset management giant recently announced plans to acquire HPS Investment Partners, a leading private credit firm, in a $12 billion all-stock deal. Private credit has emerged as a lucrative sector, with stricter banking regulations making traditional lending less accessible.
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Founded in 2007 and spun out of JPMorgan in 2016, HPS has grown its AUM to $148 billion as of September 2023. BlackRock’s acquisition reflects its commitment to diversifying into fast-growing markets.
As IBIT flourishes and BlackRock expands its reach, the asset manager cements its role as a dominant force in both traditional and emerging financial markets.
Notably, BlackRock recently secured a commercial license to operate in Abu Dhabi, further strengthening its global footprint.
