BlackRock’s Record ETF Offering Helped Bitcoin Hit $100K

BlackRock’s bitcoin exchange-traded fund (ETF) is reportedly a record-breaker, in more ways than one.

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The company’s iShares unit offers 1,400-plus ETFs, including its Bitcoin Trust, which launched this year, Bloomberg reported Monday, (Dec. 30). That trust, known as IBIT, now has more than $50 billion in assets, the strongest debut ever for an ETF, and the size of more than 50 European market-focused ETFs put together.

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“IBIT’s growth is unprecedented. It’s the fastest ETF to reach most milestones, faster than any other ETF in any asset class,” said Bloomberg Intelligence analyst James Seyffart, per the report, adding that — at the current asset level and an expense ratio of 0.25% — IBIT can expect to earn around $112 million per year.

IBIT’s success goes beyond BlackRock and helped mark a turning point for bitcoin, according to the report.

BlackRock — the world’s largest investment firm — has more than $11 trillion in assets under management, so its embrace of bitcoin ETFs helped push the cryptocurrency’s price above $100,000 for the first time, the report said.

This year began with the Securities and Exchange Commission approving bitcoin ETFs after years of opposing the idea. The move was cheered by figures throughout the cryptocurrency sector, including Sui Chung, CEO of Kraken-owned CF Benchmarks.

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“A spot ETF has always been important because it stands to open bitcoin up to a much broader swathe of investors,” Chung said in a statement to PYMNTS at the time. “We look forward to working with asset-allocators as they incorporate this new asset class into their portfolios and models, significantly increasing the number of investors who could have BTC exposure.”

Coinbase, meanwhile, called the approval a “watershed moment for the crypto economy” on its company blog, saying the ETFs “will help catalyze further growth and innovation and expand the size and breadth of crypto markets.”

This year has been momentous for cryptocurrency.

“The changes of 2024 laid the groundwork for a more resilient and integrated crypto ecosystem,” PYMNTS wrote last week. “Regulatory clarity, technological advancements and growing institutional interest signaled that the industry was entering a new phase of maturity. However, achieving mainstream adoption will require continued innovation, collaboration and a commitment to addressing the challenges that remain.”