BlackRock’s Bitcoin ETF Shatters Records: Hits $80B AUM in Just 374 Days as BTC Soars Past $118K
- BlackRock’s IBIT ETF Makes Wall Street History
- Bitcoin’s Meteoric Rise Continues Unabated
- ETF Inflows Tell the Real Story
- The Macro Picture: Fed Policy and Political Tailwinds
- Ethereum Joins the Party
- FAQ: Understanding Bitcoin and Crypto ETFs
BlackRock’s iShares bitcoin Trust (IBIT) has made history by becoming the fastest ETF ever to reach $80 billion in assets under management, achieving this milestone in a blistering 374 days. This comes as Bitcoin continues its unprecedented rally, smashing through $118,000 and setting new all-time highs. The spot Bitcoin ETF market is experiencing massive inflows, with $1.18 billion recorded on a single day, while the total crypto ETF market saw $3.7 billion in inflows last week. We break down what’s driving this historic rally and what it means for investors.
BlackRock’s IBIT ETF Makes Wall Street History
In what can only be described as a watershed moment for cryptocurrency adoption, BlackRock’s IBIT has demolished previous records for ETF growth. The fund crossed $80 billion in assets under management in just 374 days - five times faster than the previous record holder, Vanguard’s S&P 500 ETF (VOO), which took 1,814 days to reach the same milestone.
“This isn’t just about Bitcoin’s price appreciation,” noted Eric Balchunas, Bloomberg’s senior ETF analyst. “While the rising tide of BTC’s price certainly helps, we’re seeing genuine, sustained demand from institutional investors who are finally getting comfortable with crypto through these regulated products.”
Bitcoin’s Meteoric Rise Continues Unabated
The world’s leading cryptocurrency has been on an absolute tear, smashing through psychological barrier after psychological barrier. After briefly touching $112,152 on Tuesday, BTC continued its upward trajectory, reaching $118,000 by Friday morning according to TradingView data.
By Monday, Bitcoin had made history again, hitting nearly $123,000 on BTCC exchange before settling around $117,858 at publication time - still up 6% on the day. The weekly gains stand at an impressive 12%, with daily trading volumes exceeding $50 billion across major exchanges.
ETF Inflows Tell the Real Story
While price movements grab headlines, the real story is in the ETF flows. Spot Bitcoin ETFs recorded $1.18 billion in inflows on Thursday alone - the second-highest daily inflow since their January 2024 launch. Cumulative net inflows have now surpassed $50 billion.
“We’re seeing a fundamental shift in how institutions approach crypto,” explained Min Jung from Presto Research. “Following Strategy’s lead, more companies are incorporating Bitcoin into their strategic asset allocation. The ETF approvals have simply made this process easier and more familiar to traditional investors.”
The Macro Picture: Fed Policy and Political Tailwinds
James Butterfill, CoinShares’ head of research, points to macroeconomic factors driving this rally. The Federal Reserve’s June meeting minutes revealed that most officials anticipate rate cuts this year, creating favorable conditions for risk assets like Bitcoin.
Political developments are adding fuel to the fire. The House is set to vote on both the GENIUS Act (stablecoin regulation) and CLARITY Act (digital asset framework) - legislation that could provide much-needed regulatory clarity for institutional investors.
Ethereum Joins the Party
While Bitcoin dominates headlines, Ethereum isn’t sitting idle. The second-largest cryptocurrency rose nearly 3% in 24 hours to break $3,000, with weekly gains of 20%. However, the total crypto market cap dipped slightly by 0.5% to $3.87 trillion as altcoins took a breather from their recent rallies.
FAQ: Understanding Bitcoin and Crypto ETFs
What is Bitcoin?
Bitcoin is the world’s first and most valuable cryptocurrency, operating on a decentralized peer-to-peer network secured by blockchain technology. Unlike traditional currencies, it isn’t controlled by any government or central bank.
How can I invest in Bitcoin?
You can buy Bitcoin directly through exchanges like BTCC or through regulated products like ETFs. BlackRock’s IBIT provides exposure through traditional brokerage accounts, eliminating the need to manage private keys.
Why hasn’t Bitcoin been surpassed by other cryptocurrencies?
Bitcoin maintains over 50% of the total crypto market cap due to its first-mover advantage, network effects, and widespread institutional adoption. While newer projects offer different features, none have matched Bitcoin’s combination of security, liquidity, and brand recognition.
Should I consider Bitcoin for my portfolio?
This article does not constitute investment advice. That said, Bitcoin has shown periods of significant outperformance relative to traditional assets, though with higher volatility. Consult a financial professional to determine if it aligns with your risk tolerance and investment goals.
