Bitcoin ETFs Smash Growth Records

The cryptocurrency investment landscape has witnessed a historic milestone as the spot bitcoin exchange-traded funds (ETFs) from BlackRock and Fidelity have shattered previous records for rapid asset accumulation. According to Bloomberg’s senior ETF analyst Eric Balchunas, these funds have amassed over $10 billion in assets under management at an unprecedented pace.

BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) have dramatically outpaced the previous record-holder. “Prior to the bitcoin ETFs, the record speed for an ETF to reach $10 billion in assets was held by JEPQ, which achieved this in 647 trading days (nearly three years). IBIT got there in just 49 days, FBTC in 77 days,” Balchunas noted on the social media platform X.

For context, the JEPQ, or JPMorgan Nasdaq Equity Premium Income ETF, an actively managed fund that leverages the Nasdaq-100 Index, previously set the record. As of the morning of May 10, JEPQ traded at $53.42, with year-to-date returns of 10.14% and net assets totaling $12.37 billion.

Launched on January 11, 2024, both IBIT and FBTC offer investors the opportunity to gain exposure to bitcoin’s price movements without the necessity of holding the asset directly. This feature has evidently appealed to a wide range of investors, propelling these funds to notable success.

IBIT first surpassed $10 billion in total inflows by March 11, 2024, and continued its impressive trajectory, reaching $15 billion by April 12. On the other hand, FBTC also showed strong performance, becoming the second bitcoin ETF to hit $1 billion in inflows shortly after its launch on January 19, as reported by The Block. By March 28, FBTC had also crossed the $10 billion mark, with a record single-day inflow of $473 million earlier in March.

Currently, IBIT and FBTC are among the largest spot bitcoin ETFs by market share, holding 43.98% and 18.34% respectively. This dominance is second only to Grayscale’s GBTC, underscoring the significant interest and investment flowing into cryptocurrency through these innovative financial products.

The rapid growth of bitcoin ETFs like IBIT and FBTC not only highlights their appeal among investors but also marks a significant evolution in the way people invest in cryptocurrencies. As these funds continue to draw unprecedented levels of capital, they underscore the increasing mainstream acceptance of bitcoin as a legitimate and valuable investment asset.