BlackRock Inc.’s spot-Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust ETF (IBIT), has overtaken the firm’s prominent iShares Gold Trust (IAU), reaching $34.3 billion in assets after an unprecedented $1.1 billion inflow on Thursday, according to Bloomberg. This surge in investment brings IBIT’s total inflows to more than $27 billion since its launch in January, propelling it to become the fourth top-performing fund globally by flows in 2024.
The milestone highlights growing investor interest in Bitcoin ETFs as Bitcoin itself reached an all-time high of $76,956 on Thursday. The cryptocurrency rally has been fueled in part by the election of Donald Trump, whose pro-crypto stance has spurred optimism about future regulatory support from the incoming administration and Congress.
Although IBIT has now surpassed IAU, BlackRock’s main gold fund valued at $33 billion, it still trails the larger SPDR Gold Shares (GLD), which holds over $76 billion in assets. Gold has also seen strong demand this year, with record highs in pricing. However, gold ETFs recently recorded a net sale of 78,011 troy ounces, contributing to a yearly outflow of 1.92 million ounces as investors increasingly turn to “digital gold.”
Market analysts see Trump’s pro-crypto policy outlook and recent Federal Reserve interest rate cuts as key catalysts for ongoing inflows into cryptocurrency-linked ETFs. This record inflow to IBIT underscores a broader shift among investors who are looking to diversify with Bitcoin, encouraged by a regulatory landscape that could see Bitcoin’s role further legitimized within the financial ecosystem.
