Originally published on: November 08, 2024
BlackRock’s Bitcoin exchange-traded fund (ETF) has taken the financial world by storm, surpassing the assets of the asset manager’s gold ETF in record time. The iShares Bitcoin Trust (IBIT) now boasts over $33 billion in net assets, eclipsing the iShares Gold Trust (IAU) which has been in existence since 2005.
The rapid rise of IBIT, launched only 10 months ago, has left experts in awe. Nate Geraci, president of The ETF Store, described the achievement as “absolutely wild” in a recent post on the X platform. This milestone comes on the heels of a surge in the crypto market following Donald Trump’s victory in the US presidential election, with analysts predicting a positive impact on the industry.
In the wake of Trump’s win, IBIT experienced its biggest volume day ever on November 6, attracting investors to the world of cryptocurrencies. On November 7, the ETF saw $1.1 billion in inflows, reclaiming its status after a brief period of outflows. This surge in interest coincided with Bitcoin breaking consecutive daily all-time highs, reaching a price above $76,800.
Bitcoin has emerged as a dominant player in the ETF landscape this year, with six of the top 10 most successful launches in 2024 being related to the cryptocurrency. With over 400 new ETFs launched this year, the surge in interest has been focused on spot BTC ETFs, indicating a growing appetite for digital assets among investors.
Trump’s victory has acted as a catalyst for the approval of several proposed crypto ETFs waiting for regulatory clearance in the US. Asset managers have also filed for ETFs holding altcoins like Solana, XRP, and Litecoin, along with plans for crypto index ETFs diversifying holdings across various tokens.
The surge in interest in Bitcoin and other cryptocurrencies reflects a growing trend in the financial world, as digital assets become a more mainstream investment option. Stay tuned for more updates on the evolving ETF landscape and how it could affect your investment strategies.
