Institutional adoption of Bitcoin is reaching new heights with IBIT, BlackRock’s spot Bitcoin ETF, crossing the historic threshold of 100,000 BTC under management in just one month.
A dazzling start for BlackRock’s Bitcoin spot ETF
Launched on January 11, 2024, the iShares Bitcoin Trust (IBIT) from BlackRock has grown by leaps and bounds. In just one month of trading, it has become the first spot Bitcoin ETF in the United States to pass the 100,000 BTC mark under management.
This Tuesday, February 13, IBIT received $493 million in net inflows, an exceptional performance. This massive influx of capital boosted its assets from 2,621 BTC to 105,280 BTC in one month, a meteoric rise of 3,700%.
The data reveals historic net inflows of $631.3 million spread across the 10 spot Bitcoin ETFs that day. IBIT took the lion’s share, with nearly 80% of the total, demonstrating an institutional appetite for Bitcoin never seen before.
The success of this ETF contrasts with the pioneer GBTC (Grayscale Bitcoin Trust). While IBIT is reaping the rewards, GBTC has lost 25% of its holdings since the launch of Bitcoin spot ETFs, falling from 619,220 BTC to 463,475 BTC.
At the same time, the price of Bitcoin has risen sharply. The queen of cryptos broke through the $52,000 barrier, a peak not seen since December 2021, taking its market cap above $1 trillion.
The meteoric rise of BlackRock’s IBIT, propelled by massive inflows of institutional capital, marks a decisive milestone in the adoption of Bitcoin. With its success in terms of investment inflows, record assets under management and rising prices, this ETF confirms Bitcoin as a must-have investment for institutional investors seeking lucrative returns in 2024.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
