Bitcoin ETFs Are on Fire: BlackRock’s Fund Surpasses Gold Counterpart
In a stunning turn of events, BlackRock’s Bitcoin exchange-traded fund (ETF) has surpassed its gold counterpart in terms of assets under management. This is a remarkable feat, considering the Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), was only launched in January. As of November 8, IBIT boasts over $33 billion in net assets, edging out the iShares Gold Trust (IAU), which has been trading since 2005.
A Wild Ride for Bitcoin
The crypto market has been on a tear lately, with many attributing the surge to Donald Trump’s victory in the US presidential election. The thinking is that a Trump win will be a boon for the industry, and investors are taking notice. On November 6, the day after the election, IBIT saw its biggest volume day ever, with investors flocking to cryptocurrencies. The very next day, the fund clocked an impressive $1.1 billion in inflows, reversing two consecutive days of outflows.
Bitcoin’s Winning Streak
Bitcoin itself has been on a hot streak, with the price trading above $76,800 and setting consecutive daily all-time highs. This has helped propel IBIT to the top of the ETF landscape, with Bitcoin accounting for six of the top 10 most successful launches in 2024. In fact, the four biggest launches by inflows this year have all been spot Bitcoin ETFs, demonstrating the immense popularity of the cryptocurrency.
The success of IBIT and other Bitcoin ETFs has also paved the way for other crypto-related funds. With Trump’s win seen as a greenlight for the industry, several proposed crypto ETFs are now waiting in the wings for regulatory approval. These include funds holding altcoins like Solana, XRP, and Litecoin, as well as crypto index ETFs designed to hold diverse baskets of tokens. It’s clear that the crypto space is heating up, and investors are eager to get in on the action.
The Future of Crypto ETFs
As the crypto market continues to evolve, it’s likely that we’ll see even more innovative products emerge. The recent flurry of regulatory filings for crypto ETFs is a testament to the growing demand for these types of investments. Whether you’re a seasoned investor or just starting out, it’s an exciting time to be involved in the crypto space. With the likes of BlackRock and other major asset managers throwing their weight behind Bitcoin and other cryptocurrencies, it’s clear that this is an industry on the rise.
