December 18, 2024 – BlackRock’s iShares Bitcoin Trust (IBIT) has made history by recording $36.3 billion in net inflows just 11 months after its launch, marking it as the most successful ETF debut in over a decade. According to data from Farside Investors, IBIT has surpassed nearly 2,850 ETFs in lifetime inflows, setting new industry benchmarks.
Record-Breaking Inflows Outpace Competitors
On December 16, IBIT recorded $4.188 billion in daily inflows, cementing its position as the top-performing ETF by single-day funding among cryptocurrency ETFs. This figure is nearly triple the single-day inflows of Fidelity’s Bitcoin ETF (FBTC), which saw a record $1.474 billion earlier this year.
In total, IBIT’s cumulative $36.3 billion inflows have outpaced FBTC’s $12.4 billion by almost threefold. This achievement also exceeds the combined $36.2 billion net inflows of all U.S.-listed spot Bitcoin ETFs, highlighting the fund’s dominance in the crypto ETF market.
Outperforming Legacy Products
Industry veteran Nate Geraci, CEO of The ETF Store, stated, “IBIT’s inflows surpass every ETF launched since 2014 in terms of lifetime funding—a milestone achieved in less than a year.” Analysts have credited IBIT’s success to its robust institutional adoption and timing, as market demand for regulated Bitcoin exposure has surged.
Even compared to traditional assets, IBIT’s growth is unparalleled. The ETF has surpassed gold ETFs in year-to-date inflows. Eric Balchunas, Senior ETF Analyst at Bloomberg, noted that combined assets under management (AUM) for Bitcoin-related ETFs in the U.S. have reached $130 billion, outpacing gold ETFs, which stand at $128 billion.
Transforming Institutional Crypto Adoption
Cryptocurrency-related ETFs have emerged as a cornerstone for institutional investors seeking regulated exposure to Bitcoin and Ethereum. IBIT has led the charge, with analysts attributing its growth to increasing adoption by hedge funds and retirement accounts.
Bitfinex analysts highlighted in a recent report that ETFs, particularly IBIT, are catalysts for Bitcoin’s 2024 rally. They emphasize that regulated products like IBIT are key to shifting Bitcoin’s market cycles, paving the way for broader adoption.
Implications for the Broader Market
With over $360 billion in total inflows across all cryptocurrency ETFs this year, the sector has become a major growth driver for Bitcoin. Notably, while Grayscale’s GBTC has faced outflows of $21 billion since its conversion to an ETF, the overall spot Bitcoin ETF market has more than compensated for this loss.
Looking ahead, Bitwise predicts that cryptocurrency ETFs will play a critical role in Ethereum’s growth in 2025, much like Bitcoin ETFs have this year. Analysts expect continued interest in regulated crypto products to push inflows even higher, further bridging the gap between traditional finance and digital assets.