IBIT Tops BlackRock ETFs: Bitcoin Trust Nears $100B AUM
- BlackRock’s iShares Bitcoin Trust nears $100B AUM, becoming the firm’s most profitable ETF.
- IBIT records $244M in annual revenue, surpassing long-standing BlackRock funds.
- Institutional demand for ETFs grows as IBIT drives record inflows into digital asset markets.
BlackRock’s iShares Bitcoin Trust (IBIT) is rewriting ETF history. Less than two years after launch, it is close to reaching $100 billion in assets under management. The fund has already become BlackRock’s most profitable ETF, signaling massive institutional demand for Bitcoin exposure through regulated investment vehicles.
Market analysts say IBIT’s rise highlights a major turning point in the adoption of crypto-based financial products. Bloomberg’s Eric Balchunas noted that IBIT’s speed of growth is “absurd,” given the long histories of other top-performing ETFs that took decades to reach comparable levels.
IBIT Surges Past Veteran ETFs
IBIT has generated $244 million in annual revenue, outpacing funds that have operated for over two decades. The iShares Russell 1000 Growth ETF, which launched 25 years ago, currently earns $219 million in annualized revenue. Similarly, the iShares MSCI EAFE ETF, operating for 24 years, earns around $219 million.
There are other notable funds like the iShares Core S&P 500 ETF and iShares Gold Trust with annual revenues of $210 million and 151 million, respectively. They are both over 20 years old, but IBIT overtook them easily.
The milestone underscores the unmatched speed at which institutional capital is entering Bitcoin investment products. Bloomberg data shows IBIT now outperforms nearly every long-standing BlackRock ETF in both profitability and growth. Analysts also believe it could soon break the record for the fastest ETF to hit $100 billion in AUM, surpassing Vanguard’s S&P 500 ETF, which achieved the milestone in 2,011 days.
Institutional Demand Drives Record Growth
The increase in IBIT demonstrates the enhancement of interest in digital assets via traditional financial channels. Bitcoin’s continued rally above $125,000 has fueled investor interest, injecting new capital into ETFs. According to recent information from CoinShares, investment products related to Bitcoin have registered more than 3.55 billion inflows in the first week of October.
Year-to-date, Bitcoin exchange-traded products have attracted more than $27.5 billion in inflows, lifting the total crypto ETP market to $254 billion in assets under management. Of that, Bitcoin-related vehicles account for roughly $195 billion, marking their strongest performance since ETF approvals began.
Institutional investors view IBIT as a bridge between traditional finance and the emerging digital asset economy. Its fee revenue and rapid growth make it one of the most successful ETF launches in modern financial history.
Related: Investors Turn to Bitcoin and Gold as U.S. Debt Nears $38T
BlackRock Leads the ETF Market Shift
IBIT’s profitability positions BlackRock as a leader in integrating cryptocurrency into mainstream investment portfolios. Analysts believe this success will influence future portfolio allocations as asset managers respond to client demand for digital asset exposure.
According to Bloomberg Intelligence, IBIT’s performance has now placed it ahead of traditional equity and commodity ETFs. The fund’s sustained inflows indicate that Bitcoin is increasingly being treated as a strategic allocation in diversified portfolios rather than a speculative asset.
The iShares Bitcoin Trust now sits at only $2 billion on its way to the 100 billion AUM threshold. Achievement of this milestone would turn it into the fastest-growing ETF in history, solidifying the role of Bitcoin in the world of the financial ecosystem.
At the same time, the profitability of the fund represents the changing sentiment of investors across Wall Street. Even with the regulatory and macroeconomic uncertainties that prevail, institutions are becoming optimistic about the long-term value of Bitcoin.
The IBIT growth coincides with the record inflows into the crypto market, driven by rising adoption and the rise in prices. As Bitcoin continues to gain acceptance among asset managers, IBIT’s trajectory signals a deeper fusion of traditional finance and blockchain-based assets.
