BlackRock’s iShares Bitcoin Trust (IBIT) outperformed competitors in 2024, with record-breaking net inflows. Since its inception in January, IBIT has raised more than $37 billion, cementing its status as the most successful Bitcoin exchange-traded fund (ETF) this year.
The fund’s remarkable performance put it well ahead of its closest competitor, the Fidelity Wise Origin Bitcoin Fund, which received roughly $12 billion in net inflows. BlackRock also dominated the market in Ethereum ETFs, with its iShares Ethereum Trust receiving $3.5 billion in inflows, demonstrating the company’s supremacy in the cryptocurrency ETF category.
Overall, U.S. Bitcoin ETFs saw more than $35 billion in net inflows in 2024. This milestone demonstrates the growing popularity of bitcoin ETFs among institutional and individual investors. BlackRock’s success has also increased competition in the ETF industry, boosting innovation and investor confidence in digital assets.
Bitcoin ETFs made their debut on the US market in January, following significant regulatory discussions. Their launch coincided with a significant increase in the cryptocurrency market, spurred by broader investor confidence in Bitcoin’s long-term prospects. By November, U.S. Bitcoin ETFs had topped $100 billion in net assets, demonstrating their growing popularity.
As the most popular Bitcoin ETF, IBIT accounts for a significant portion of the market’s daily trading activity and has emerged as one of the major institutional Bitcoin holders. The ETF’s success shows a shift in investor preferences for digital assets, with many seeing Bitcoin as a viable alternative to traditional assets such as gold.
Despite small setbacks, including occasional outflows, BlackRock’s IBIT ETF has cemented its position as a prominent player in the financial markets. Its performance not only highlights the potential of Bitcoin ETFs but also points to a greater incorporation of cryptocurrencies into mainstream investment methods.
By the end of 2024, IBIT’s influence had transformed the financial landscape, cementing Bitcoin’s role as a cornerstone of the emerging digital economy.
