The IBIT Bitcoin ETF, run by BlackRock, hit a significant milestone last week when its assets under management (AUM) surpassed 500,000 BTC, or $48 billion. The ETF debuted on January 11, 2024, and this milestone was reached less than a year later.
BlackRock’s Bitcoin ETF Surpasses 500,000 BTC
A recent report from K33 reveals that $338.3 million in net inflows on November 29 pushed BlackRock’s Bitcoin ETF holdings to 500,380 BTC. This accounts for 2.38% of Bitcoin’s total capped supply, highlighting the increasing demand for these investment vehicles among institutional investors. Industry expert Vetle Lunde, K33’s Head of Research, described the achievement as “another huge milestone after a tremendous launch year.”
Lunde also noted that the ETF’s institutional ownership stood at 24% as of Q3 2024. He added, “Eventually, we expect these vehicles to emerge as standard portfolio diversifiers, with large funds allocating 1–3% of their capital to these funds due to BTC’s tendency to improve risk-adjusted returns.” BlackRock’s success is reflective of the growing demand for Bitcoin ETFs, with IBIT becoming the third-strongest ETF in the U.S. by year-to-date flows, trailing only larger funds like Invesco’s QQQ.
Bitcoin ETFs Propel Price Surge
The introduction of Bitcoin ETFs has influenced the historic price swings of Bitcoin this year. Since BlackRock CEO Larry Fink dubbed IBIT “the fastest-growing ETF in the history of ETFs” in March, the price of Bitcoin has risen 38%. Currently, Bitcoin is trading at $94,762. While speaking with Fox Business, he was surprised by how quickly Bitcoin’s value increased.
October saw BlackRock CEO Larry Fink say that political events, such as the Trump vs. Harris presidential election, have little bearing on Bitcoin’s growth. He called Bitcoin “an asset class in itself” that is independent of national borders and international politics during BlackRock’s third-quarter results call. With the recent election having a significant impact, U.S. Bitcoin ETFs posted $353.6 million in net inflows on November 29, raising their total to $31.2 billion since creation, substantially refuting his claim.
Bitcoin ETFs Near 1.1M BTC
In November, investors demonstrated strong interest as they invested a record $6.6 billion. Since ETFs make Bitcoin exposure easier for conventional investors, market watchers think this surge has contributed to Bitcoin’s all-time high price. U.S. BlackRock Bitcoin ETF Milestone total holdings are getting close to 1.1 million BTC, which is almost the same amount as Satoshi Nakamoto’s estimated stash.
Although the generally acknowledged number is 1.1 million BTC, estimates place Nakamoto’s holdings anywhere from 600,000 to 1.5 million BTC based on mining patterns. While Bitcoin ETFs continue to dominate, U.S. Ethereum ETFs have also experienced consistent inflows. With $55.9 million in net inflows, BlackRock’s ETHA fund contributed to a November total of $1.1 billion across Ethereum ETFs. Analysts expect Bitcoin ETFs to continue growing in the future. Thanks to Bitcoin’s increasing value and diversification benefits, Lunde predicts that funds like IBIT may reach 1 million BTC in AUM by 2025.
Final Thoughts
The fact that BlackRock’s IBIT ETF, which holds 2.38 percent of Bitcoin’s restricted supply, has surpassed 500,000 BTC demonstrates the skyrocketing demand for crypto investment vehicles. Institutional investors are seeing Bitcoin exchange-traded funds (ETFs) as a way to diversify their portfolios, leading to their significant growth and widespread acceptance.
There is no denying the market effect of Bitcoin ETFs, as their holdings approach Satoshi Nakamoto’s estimated total. These funds further establish Bitcoin as a worldwide, politically neutral asset class, with predictions indicating that IBIT might reach 1 million BTC in AUM by 2025.
FAQs
What percentage of Bitcoin's total supply does BlackRock’s ETF now hold?
BlackRock’s Bitcoin ETF holds 2.38% of Bitcoin’s total capped supply, reflecting growing institutional interest in Bitcoin ETFs.
How much did BlackRock’s Bitcoin ETF increase in November 2024?
In November 2024, the ETF saw $338.3 million in net inflows, pushing its total holdings to over 500,000 BTC.
How has the Bitcoin ETF impacted Bitcoin's price?
Since the launch of BlackRock’s Bitcoin ETF, Bitcoin’s price has surged by 38%, reaching $94,762 as of November 2024.
What are the future predictions for Bitcoin ETFs?
Experts predict that Bitcoin ETFs, including BlackRock's IBIT, could reach 1 million BTC in assets under management by 2025, reflecting increasing demand.
