This milestone cements its position as a major player in the institutional adoption of Bitcoin, representing 2.38% of the cryptocurrency’s total 21 million supply.
The fund reached the milestone after US$338.3 million in net inflows on December 2, according to data from K33 Research. IBIT’s rapid growth has made it the third-strongest ETF in the US in year-to-date inflows, surpassing Invesco’s QQQ ETF in terms of momentum. Analysts expect this trend to continue as Bitcoin becomes a staple for institutional portfolios.
Despite its record-breaking performance, IBIT’s holdings belong to shareholders rather than BlackRock itself. Presto Head of Research Peter Chung highlighted the significance of this growth, comparing it to MicroStrategy’s Bitcoin holdings and even US government proposals for a strategic Bitcoin reserve.
The growing popularity of Bitcoin ETFs has played a critical role in driving Bitcoin’s recent price surge, which now hovers around US$95,321. Analysts, including BlackRock CEO Larry Fink, attribute this growth to increased accessibility for institutional investors and the broader appeal of Bitcoin as a diversification asset.
Notably, the cumulative holdings of US Bitcoin ETFs are approaching the estimated 1.1 million BTC mined by Bitcoin’s pseudonymous creator, Satoshi Nakamoto. This comparison highlights the accelerating institutional shift toward cryptocurrency, a trend analysts believe will shape the market in the coming years.
Meanwhile, US Ethereum ETFs are also seeing traction, with record inflows of US$1.1 billion in November, signaling growing investor interest in broader crypto exposure beyond Bitcoin.
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