Originally published on: November 08, 2024
BlackRock’s Bitcoin exchange-traded fund (ETF) has achieved an impressive milestone by surpassing the asset manager’s gold ETF in terms of net assets, despite only being launched back in January. The iShares Bitcoin Trust (IBIT) now holds over $33 billion in assets as of November 8, outpacing the iShares Gold Trust (IAU) by a significant margin.
This achievement has left industry experts in awe, with Nate Geraci, president of The ETF Store, calling it “absolutely wild.” IBIT, which launched less than a year ago, has managed to outshine IAU, which has been trading since 2005.
The surge in the crypto market following Donald Trump’s presidential victory has been cited as a contributing factor to the success of IBIT. Investors rushed towards cryptocurrencies after the election, leading to IBIT’s biggest volume day ever on November 6, as per Bloomberg ETF analyst Eric Balchunas.
On November 7, IBIT recorded $1.1 billion in inflows, bouncing back after experiencing two consecutive days of outflows. This success comes at a time when Bitcoin continues to set consecutive daily all-time highs, with its price surpassing $76,800.
Bitcoin has undeniably dominated the ETF landscape this year, with six out of the top 10 most successful launches in 2024 being related to BTC. Asset managers have shown a keen interest in launching ETFs holding altcoins like Solana, XRP, and Litecoin, awaiting regulatory approval in the US.
The surge in proposed crypto ETFs waiting for approval is seen as a direct response to Trump’s presidential win. Industry insiders believe that the approval of these ETFs could open up new investment opportunities in the crypto market.
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