Published by CentBit.Online – Your Trusted Crypto & Blockchain Expert in Bangladesh
In a groundbreaking achievement, BlackRock’s IBIT Bitcoin ETF has crossed the milestone of 500,000 BTC in assets under management (AUM), valued at approximately $48 billion. This accomplishment marks a significant development for Bitcoin investment products, highlighting their growing popularity among institutional investors.
BlackRock’s Bitcoin ETF Hits 500,000 BTC Milestone
According to a recent report from K33, the ETF surpassed 500,380 BTC in AUM following net inflows of $338.3 million on November 29. This figure represents 2.38% of Bitcoin’s total capped supply, emphasizing the increasing adoption of Bitcoin ETFs as a preferred investment vehicle.
Vetle Lunde, Head of Research at K33, hailed the milestone as a testament to the ETF’s remarkable first year:
“Yet another huge milestone after a tremendous launch year.”
Lunde also noted that institutional ownership of IBIT reached 24% as of Q3 2024, reflecting growing confidence in Bitcoin as a long-term portfolio diversifier.
“We expect large funds to allocate 1-3% of their capital to Bitcoin ETFs due to BTC’s ability to improve risk-adjusted returns,” Lunde added.
This makes IBIT the third-strongest ETF in the U.S. in year-to-date flows, trailing only larger funds like Invesco’s QQQ.
Bitcoin ETFs Driving Market Growth
The meteoric rise of Bitcoin ETFs has significantly impacted Bitcoin’s price trajectory this year. As of writing, Bitcoin is trading at $94,762, marking a 38% increase since March, when BlackRock CEO Larry Fink described IBIT as “the fastest-growing ETF in the history of ETFs.”
During a recent Fox Business interview, Fink expressed surprise at Bitcoin’s rapid appreciation and highlighted its role as a transformative asset:
“Bitcoin is an asset class in itself, transcending global politics and traditional financial boundaries.”
Record-Setting Inflows
November 2024 has been a record-breaking month for Bitcoin ETFs, with U.S.-based funds reporting $6.6 billion in net inflows, bringing their total to $31.2 billion since inception. This surge played a pivotal role in pushing Bitcoin to all-time highs, simplifying access for traditional investors and solidifying Bitcoin ETFs as a mainstream financial product.
Collectively, U.S. Bitcoin ETFs now hold nearly 1.1 million BTC, approaching the estimated holdings of Bitcoin’s enigmatic creator, Satoshi Nakamoto, believed to range between 600,000 and 1.5 million BTC.
Ethereum ETFs Gaining Momentum
While Bitcoin ETFs dominate the market, Ethereum ETFs are also seeing steady growth. BlackRock’s ETHA fund led with $55.9 million in net inflows, contributing to $1.1 billion across Ethereum ETFs in November.
Future Outlook for Bitcoin ETFs
Experts anticipate continued expansion in the Bitcoin ETF market. Vetle Lunde predicts that leading funds like IBIT could exceed 1 million BTC in AUM by 2025, driven by rising Bitcoin prices and increasing institutional adoption.
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