BlackRock’s iShares Bitcoin Trust (IBIT) has reached a new high, becoming the largest spot bitcoin exchange-traded fund (ETF) in the U.S.
In just 18 months since its launch in January 2024, IBIT has accumulated over 700,000 BTC, now worth over $80 billion, and accounts for more than 55% of all bitcoin held by U.S. spot ETFs.
The numbers are mind-boggling. On July 3, IBIT held 698,919 BTC. Just days later, a net inflow of over 1,500 BTC took it past 700,000. By July 10, it was 706,000 BTC according to BlackRock’s website.
Nate Geraci, president of NovaDius Wealth Management, stated on X that it’s “ridiculous” that the fund attracted this much in such a short time.
IBIT’s growth has not only made it the largest bitcoin ETF by AUM, but also one of BlackRock’s top-performing funds.
According to Bloomberg ETF analyst Eric Balchunas, it’s now the 3rd highest revenue-generating ETF in BlackRock’s 1,197 fund lineup, and just $9 billion away from being #1.
As of early July, U.S. spot bitcoin ETFs hold around 1.25 million BTC, about 6% of the total 21 million supply.
IBIT’s share of 56% is more than double its closest competitors. Fidelity’s FBTC has over 200,000 BTC and Grayscale’s GBTC has declined to around 184,000 BTC after previously holding over 600,000.
BlackRock’s dominance isn’t limited to size. It also leads in trading volume. IBIT regularly accounts for around 80% of daily volume among bitcoin ETFs. On July 10, its trading volume stood at $5 billion, double its average volume.
IBIT’s success shows how attractive bitcoin has become among institutional investors. Asset managers, corporations and high net worth individuals have been steadily getting into bitcoin as the asset gains legitimacy through ETFs.
Balchunas calls the volume spikes “big boy flows,” meaning large institutional money is at play here. These flows are happening as the broader digital asset market is rallying, with bitcoin skyrocketing past $118,000 and just shy of the $120,000 target.
Inflows into U.S. spot bitcoin ETFs have reached over $75 billion since 2024 (excluding GBTC outflows), and BlackRock’s IBIT accounts for over $53.4 billion of that. On July 10, net inflows into spot ETFs were $1.175 billion and BlackRock was at the top again.
BlackRock’s bitcoin fund isn’t just growing fast—it’s more profitable than some of BlackRock’s biggest traditional funds. While BlackRock’s S&P 500 ETF (IVV) has $624 billion in AUM, IBIT has now generated $187.2 million in annual fees, beating IVV’s $187.1 million.
Bitcoin is also starting to rival gold as a safe-haven asset. While the SPDR Gold Shares ETF (GLD) is the largest gold ETF with over $100 billion in AUM, it took GLD 15 years to hit this milestone. IBIT did it in under 2 years.
Several macro factors are driving bitcoin’s growth. Interest rate cuts, geopolitical stability and regulatory clarity following the SEC’s approval of spot bitcoin ETFs are a few to name.
Analysts expect more growth with projections of $200 billion in total bitcoin ETF AUM by the end of 2025.
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