BlackRock’s Bitcoin ETF (IBIT) has made history, surpassing the combined assets under management (AUM) of over 50 regional ETFs in Europe. Some of these products have been active for two decades, yet none match the rapid growth of IBIT.
Bitcoin ETFs See Unprecedented Inflows
Bitcoin ETFs have experienced record inflows recently, with BlackRock leading the charge.
- In November alone, Bitcoin ETFs attracted a record $6.1 billion in net inflows.
- BlackRock’s IBIT contributed the largest share, solidifying its leadership.
- By early December, IBIT also drove the second-largest weekly inflow for Bitcoin ETFs.
IBIT’s Rapid Growth Explained
BlackRock launched IBIT in January, and its growth has been extraordinary.
- After Donald Trump’s election victory, IBIT exceeded its previous all-time high.
- It also outperformed BlackRock’s gold-based ETF, marking a key milestone.
- Today, IBIT manages over $51 billion in net assets, representing nearly half of the US spot Bitcoin ETF market.
This success reflects growing confidence in Bitcoin as an institutional-grade investment.
Dominance in the Spot Bitcoin Market
BlackRock’s IBIT continues to set records across various metrics:
- Spot Bitcoin ETFs collectively own more Bitcoin than Satoshi Nakamoto.
- Nearly half of these holdings belong to BlackRock, highlighting its influence.
- The firm remains a consistent buyer, driving sustained growth in its Bitcoin ETF.
The Broader Impact on Crypto Markets
The rise of Bitcoin ETFs like IBIT signals increasing institutional adoption of cryptocurrency.
- European ETFs have struggled to compete, reflecting the EU’s restrictive stance on crypto.
- In late October, European Central Bank economists proposed Bitcoin price controls, further stifling regional market growth.
As institutional acceptance grows in the US, European markets risk falling behind in the global crypto race.
