BlackRock's iShares Bitcoin Trust (IBIT) surpassed $50 billion in assets under management, achieving the milestone in just 228 days—five times more than any other ETF in history.
For perspective, the previous record holder BlackRock iShares Core MSCI EAFE ETF (IEFA) took 1,329 days to reach the same level. basis Eric Balchunas, senior ETF analyst for Bloomberg.
IBIT's rapid growth coincides with a historic year Bitcoin (BTC) broke the world's largest crypto $100,000 barrier It will close at $103,000 for the first time on Wednesday in 2024 after rising more than 140%.
IBIT's performance underlines Bitcoin's demand as an institutional-level investment and highlights the role of the space. Bitcoin ETFs In driving adoption.
Spot Bitcoin ETFs like IBIT have been instrumental in bringing traditional investors into the crypto market.
Approved by the US Securities and Exchange Commission (SEC) in January, these funds offer direct exposure to Bitcoin prices without complex handling or crypto exchanges.
The approval ended years of regulatory opposition and freed up billions in revenue from investors who had previously been hesitant to enter the space.
At the market close on Wednesday, BlackRock IBIT posted $570.7 million in revenue, the data showed. Farside investors.
to speak DecryptBitfinex analysts stated that the new interest of new investors played a major role in the record-breaking year of Bitcoin.
“BTC's ability to make new ATHs every week is due to the new demand coming into the market from new investors, despite the profits,” analysts said. “Any selling was contained and exceeded by strong ETF inflows and subsequent buying from institutions.”
Adding speed to BlackRock's IBIT performance is the incoming administration. President-elect Donald TrumpHis return to the White House is accompanied by bold pro-crypto promises.
Trump has pledged to support the domestic crypto industry, including proposals to create a U.S. bitcoin reserve and protect U.S. crypto mining operations.
With the anti-crypto SEC chair The rise of Gary Gensler and the Appointment of Paul AtkinsA former SEC commissioner known for promoting market-friendly policies, analysts expect a shift to a more cooperative regulatory framework for the crypto market.
Rather than being seen as speculative assets, Bitcoin and crypto-backed ETFs like IBIT are increasingly seen as instruments of diversification and stability, especially as regulatory winds are predicted to ease.
Edited by Sebastian Sinclair
Daily Debrief Newspaper
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