Bitcoin News Today: Surging Institutional Interest Pushes BlackRock’s Bitcoin ETF to $70 Billion

BlackRock's Bitcoin ETFs Achieve Record-Breaking Growth

BlackRock's bitcoin exchange-traded funds have quickly become the company's leading revenue generators, bringing in an estimated $245 million in yearly fees. Since launching in January 2024, the U.S.-listed IBIT fund has accumulated $70.7 billion in assets in just 341 days, far surpassing initial projections.

The rapid rise of the iShares Bitcoin Trust (IBIT) has exceeded BlackRock’s own expectations. Combined allocations across all of BlackRock’s bitcoin ETFs, including Brazil’s IBIT39, are now approaching the $100 billion mark. Cristiano Castro, who oversees business development for BlackRock in Brazil, described this explosive growth as a “major surprise,” especially considering the firm manages over 1,400 ETFs and holds $13.4 trillion in assets overall.

IBIT’s impressive performance is fueled by its ability to secure more than 3% of the total bitcoin supply, alongside a surge in institutional interest following the approval of spot bitcoin ETFs in the United States. BlackRock has further demonstrated its confidence by increasing its Strategic Income Opportunities Portfolio’s investment in IBIT by 14%.

Despite experiencing a $2.34 billion outflow in November, Castro emphasized that such fluctuations are typical for products heavily influenced by retail investors responding to market volatility. The ETF’s resilience is evident, with a single-day inflow of $21.1 million on November 27, including $42.8 million from IBIT, highlighting continued demand from both individual and institutional investors. While some funds like FBTC have seen outflows, this is viewed as part of normal liquidity management and not a sign of long-term weakness.

The recent rebound in bitcoin’s price above $90,000 has further strengthened investor confidence, resulting in a combined $3.2 billion in profits for BlackRock ETF holders. Experts note that sustained inflows into these ETFs are a key factor driving the broader bitcoin market, with BlackRock’s leadership reinforcing its significant influence. As the company navigates shifting economic conditions and Federal Reserve policy changes, the prominence of its bitcoin ETFs highlights their vital role within BlackRock’s extensive portfolio.