BlackRock’s spot Bitcoin exchange-traded fund (ETF) has surpassed the threshold of 500,000 BTC ($47 million) in assets under management (AUM). The milestone shows growing institutional adoption and marks a significant achievement in the mainstream acceptance of Bitcoin (BTC) as an asset class.
Based on its most recent fund filings, BlackRock’s Bitcoin ETF reported holdings of 496,854 BTC as of November 29. A net inflow of $338.3 million (approximately 3,526 BTC) into the ETF pushed its total to 500,380 BTC, according to data from K33. This represents 2.38% of Bitcoin’s total 21 million supply.
Over 500,000 BTC
K33 Head of Research Vetle Lunde noted that BlackRock’s surpassing 500,000 BTC is yet another huge milestone after a tremendous launch year. He added that, based on year-to-date inflows, it ranks as the third most robust ETF offering in the United States, surpassing Invesco’s massive $314 billion fund.
Interestingly, 1 million BTC aligns with the amount proposed by Senator Lummis as the ideal holding for the U.S. government under her proposed Bitcoin Strategic Reserve Bill. This figure represents roughly 5% of Bitcoin’s total supply, mirroring the U.S. government’s proportionate share of global gold reserves.
Lunde also noted that the products are primed for further expansion, with institutional ownership of IBIT reaching 24% by the close of Q3 2024, allocating 1-3% of their assets to these funds, given bitcoin’s track record of enhancing risk-adjusted performance.
BlackRock BItcoin ETF Hits The Top
During an interview with Fox Business following IBIT’s crossing of the 250,000 BTC mark in March, BlackRock CEO Larry Fink noted that IBIT is the fastest-growing ETF in the history of ETFs, expressing his astonishment at BTC’s price surge. At the time, bitcoin was trading at around $69,000, and it has since risen by an additional 38%, now trading at over $93,900, according to data from CryptocurrenciesToWatch.
The BlackRock Bitcoin ETF, launched earlier this year, surpassed Grayscale’s Bitcoin Trust (GBTC) to become the world’s largest Bitcoin exchange-traded fund (ETF). The asset manager has rapidly attracted institutional and retail investors seeking exposure to Bitcoin without the complexities of direct custody. The 500 BTC milestone has placed the asset manager among the largest Bitcoin investment vehicles globally.
Meanwhile, according to Bloomberg’s Eric Balchunas, Bitcoin ETFs are 82% on the way to surpassing gold in assets. The Bitcoin EFTs total over $104 billion in assets, triggered by a strong market boost following the U.S. presidential election. This surge has pushed to several highs, with some experts and investors predicting it could hit over $100,000-$150,000 per coin.
