BlackRock’s IBIT Bitcoin ETF Suppresses $2B AUM in Just Ten Days

BlackRock’s iShares Bitcoin ETF (IBIT) has become the first of the recently launched spot Bitcoin ETFs to reach an impressive $2 billion in assets under management (AUM) in just 10 days of trading, as reported by Bloomberg Terminal data. BlackRock currently holds approximately 50,000 BTC through its ETF, making it one of the major holders of the digital asset.

IBIT, which started trading on Jan. 16, has experienced a consistent influx of capital. In the initial ten days, the fund’s strategic acquisitions and the increasing value of BTC greatly raised its AUM. On the ninth day of trading, the fund experienced a massive influx of about $170 million. This inflow allowed the fund to acquire around 4,300 BTC, bringing its total holdings to 49,952 BTC. As bitcoin surged beyond the $40,000 mark on January 26th, IBIT’s value rapidly escalated, crossing the $2 billion threshold.

Update for day 10 of the #Bitcoin ETF Cointucky derby. Volumes and flows are both slowing down a bit. Another slight negative day on flows. Total net flows stand at +$744 million. $IBIT likely crosses 2 billion in assets today pic.twitter.com/apSLYRT6Vp

— James Seyffart (@JSeyff) January 26, 2024

IBIT’s performance stands out among its competitors in the crypto industry. While GBTC, the largest Bitcoin fund in the world, transitioned to a spot ETF with almost $30 billion in AUM, IBIT’s swift growth trajectory indicates the dynamic nature of crypto investments and investor confidence in BlackRock’s management.

In a post on X, Bloomberg Intelligence analyst James Seyffart wrote:

“The bitcoin price has pushed IBIT’s assets beyond $2 billion. This plus likely new flows today should mean it will be above $2 billion at close.”

Nate Geraci, President of the ETF Store, commented that IBIT ranks third among the 600-plus ETFs launched in the past year regarding asset gathering. Moreover, he said IBIT could soon become the leading ETF in terms of assets, surpassing more traditional funds that focus on sectors such as healthcare, technology, and energy.

Fidelity’s Pursuit of $2B Milestone

Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC) is on track to surpass the $2 billion threshold. Its holdings are currently just below 44,000 BTC as of the latest update. Since its launch, the ETF has closely followed the performance of IBIT. It recorded over $100 million in inflows on Jan. 26, totaling $1.8 billion in ten days. 

Meanwhile, Fidelity’s trading volume reached $223.8 million on the tenth day of trading, slightly surpassing IBIT’s $203.7 million. This competition among major financial institutions to leverage the booming crypto market clearly indicates the sector’s growing legitimacy and appeal. Moreover, Seyffart expects Bitcoin ETFs to attract $10 billion in capital within the initial year.