The iShares Bitcoin Trust ETF (IBIT) gained over $1.1 billion in cash inflows last week, marking its best performance since March 2024. Eric Balchunas, Senior ETF Analyst at Bloomberg Intelligence, shared the data, emphasizing IBIT’s rapid rise in the ETF market.
IBIT Overtakes Vanguard in Year-to-Date Flows
IBIT recently surpassed Vanguard’s Total Stock Market ETF (VTI) to claim the third spot in year-to-date flows. This is especially impressive because IBIT launched in January 2024. Other top ETFs, in contrast, have been around for more than two decades, managing assets exceeding $300 billion.
Impressive Growth in Assets Under Management
The fund’s assets under management (AUM) now stand at $22.8 billion, placing it in the top 2% of all ETFs by size. This significant growth reflects strong investor demand for Bitcoin exposure through traditional investment vehicles. IBIT, as one of the first spot Bitcoin ETFs approved in the US, offers a familiar structure for investors entering the crypto market.
Key Factors Driving IBIT’s Success
Several factors contribute to IBIT’s rapid growth. BlackRock’s reputation as the world’s largest asset manager plays a major role. Additionally, increasing mainstream acceptance of Bitcoin and the convenience of the ETF format make it an attractive option. As a result, the substantial inflows suggest that crypto-based ETFs are gaining significant traction in the broader investment community.
IBIT’s Broader Impact on the ETF Industry
Balchunas emphasized IBIT’s influence on the overall ETF industry. The fund’s success signals a shift in the investment landscape. Digital assets are increasingly becoming essential to diversified portfolios.
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