Bloomberg Highlights BlackRock’s Bitcoin Fund As The Greatest ETF Launch In History

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As a researcher with a decade-long career in finance and a keen interest in the evolution of digital assets, I find myself utterly captivated by BlackRock’s iShares Bitcoin Trust (IBIT). The speed at which this ETF has amassed over $50 billion in just 11 months is nothing short of astounding. It surpasses traditional funds that have been operating for decades, a feat that was once unimaginable.

The journey to establishing a spot-Bitcoin ETF in the United States has indeed been a rollercoaster ride. The rejections faced by pioneers like the Winklevoss twins and the legal battles waged by Grayscale Investments were formidable obstacles, but they paved the way for BlackRock’s entry into the Bitcoin market.

The approval of IBIT in January 2024 marked a significant shift in attitude within traditional finance. Even Larry Fink, who once disparaged Bitcoin, led the charge at BlackRock. The rapid growth of IBIT eclipses the combined assets of more than 50 European-focused ETFs, many of which have been established for over 20 years.

IBIT’s dominance in the Bitcoin ETF market is not just a testament to its robust performance but also to its innovative offerings such as options trading, which has quickly become one of the most traded contracts in the ETF market. The fact that it accounts for over 50% of daily trading volume among Bitcoin ETFs speaks volumes about its impact on Bitcoin’s market dynamics.

In a world where digital assets were once dismissed as mere curiosities, IBIT has proven to be a game-changer. It has played a pivotal role in Bitcoin’s 118% price rally year-to-date and has even surpassed BlackRock’s gold ETF, the second-largest gold fund globally.

As I pen these words, BTC is trading at an impressive $97,190, a testament to the power of innovation and the relentless march of progress. And as they say in the world of finance, “The only way to make money is to buy low and sell high.” But who knew that the low could be so low and the high so high?

Joke: They say time heals all wounds, but I guess for Bitcoin, it just needs a little BlackRock’s touch!

Since its debut in January 2024, as reported by Bloomberg, BlackRock’s iShares Bitcoin Trust (IBIT) has broken records among exchange-traded funds (ETFs).

In a remarkable accomplishment surpassing industry standards, IBIT managed to gather more than $50 billion worth of assets within only 11 months. This places them ahead of established traditional funds that have been active for many decades.

From Skepticism To Success

BlackRock’s entry into the Bitcoin market marked a significant turning point, not just for Bitcoin itself, but also for the entire cryptocurrency sector.

Boasting more than $11 trillion in managed assets, the firm’s backing has played a significant role in pushing Bitcoin’s value above $100,000 for the first time, triggering a surge of institutional interest and luring investors who previously harbored doubts about cryptocurrencies.

Nevertheless, the process of creating a Bitcoin ETF approved by U.S. regulators has been marked by numerous obstacles. The Winklevoss twins initiated this endeavor back in 2013, but their attempts have consistently been turned down by the United States Securities and Exchange Commission (SEC).

Contrarily, Grayscale Investments initiated a legal fight with the SEC, resulting in a significant triumph in 2023. This victory came when a federal appellate court reversed the SEC’s previous denial of their ETF application.

With a change in scenery, the arrival of BlackRock, headed by CEO Larry Fink (previously critical of Bitcoin), represented a notable shift in perspective within conventional financial circles.

By early 2024, following SEC approval, BlackRock, Fidelity, and VanEck were able to debut the initial batch of U.S. Exchange Traded Funds (ETFs) that invest directly in Bitcoin. These funds collectively accumulated approximately $107 billion in assets.

Todd Sohn, the managing director responsible for ETF and technical strategy at Strategas Securities, pointed out that the growth rate of IBIT surpasses the combined assets held by more than fifty ETFs focusing on Europe, most of which have been in operation for over two decades.

As a researcher, I find myself in agreement with Nate Geraci, president of The ETF Store, who aptly characterized IBIT as an unprecedented launch in the history of ETFs. Moreover, Bloomberg Intelligence analyst James Seyffart highlights that IBIT has swiftly achieved significant milestones, underscoring its transformative impact on the financial landscape.

BlackRock’s Bitcoin ETF Surpasses $50 Billion In Assets

In a rapidly expanding Bitcoin Exchange-Traded Fund (ETF) sector, IBIT stands out due to its exceptional rate of asset accumulation. It surpassed $50 billion in just half the time taken by the second largest fund, which required almost four years for the same achievement.

Despite a substantial increase in investments this year, IBIT has managed to outshine BlackRock’s Gold ETF, currently the world’s second-largest gold fund.

The significant role of the Interactive Brokers Bitcoin Trust (IBIT) on Bitcoin’s market behavior is undeniable. This exchange-traded fund (ETF) has played a crucial part in Bitcoin’s impressive 118% price surge this year, with IBIT contributing more than half of the daily trading volume among all Bitcoin ETFs.

As a researcher, I’m proud to note that IBIT, the pioneering Bitcoin ETF, has etched its place in history by being the initial offering to incorporate options trading. These options contracts have swiftly risen to be among the most actively traded within the ETF market, with an average daily notional volume of approximately $1.7 billion.

Based on findings from Asym500, it appears that other Bitcoin ETFs haven’t been as active in trading compared to IBIT, indicating its leadership position.

Currently, as I’m typing this, Bitcoin (BTC), the top cryptocurrency, is being exchanged for approximately $97,190, experiencing an increase of almost 3% over the past 24 hours.

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2025-01-03 00:42