BlackRock's Bitcoin ETF IBIT Shatters Records: What's Fueling Its Unstoppable Rise?

BlackRock's iShares Bitcoin Trust (IBIT) Hits $70 Billion in Record Time

BlackRock's iShares Bitcoin Trust (IBIT) has become a monumental success in the ETF industry, amassing over $70 billion in assets under management in just 341 days. This achievement not only sets a new record but also highlights the growing acceptance of crypto ETFs among financial advisors and institutions.

Unprecedented Growth and Institutional Adoption

• $1.1 billion in net inflows last week alone.
• 1,200 13-F filers hold IBIT shares, a testament to its widespread acceptance.
• Financial advisors now hold about 20% of spot Bitcoin ETF shares, with expectations this could double in the next year.

Why Are Advisors and Institutions Jumping In?

Eric Balchunas, Bloomberg Senior ETF Analyst, notes that the rapid adoption by advisors and institutions is unusual. "These are bigger fish that don't bite quickly," he said. "Usually, it takes years for them to get interested in an ETF."

"Advisors and institutions, they're just more sophisticated." — Eric Balchunas

The Role of a Crypto-Friendly Political Climate

The Trump administration's loosened regulations and crypto-friendly policies have spurred significant price gains in Bitcoin and major altcoins. Bitcoin recently traded near $105,000, a 12% gain year-to-date, outperforming traditional equity indexes.

Financial Advisors Warming Up to Crypto

A Bitwise and VettaFi survey revealed that nearly one in five financial advisors plans to allocate crypto to investor accounts in 2025, doubling from the previous year. Ric Edelman, founder of the Digital Assets Council of Financial Professionals, advises allocations of 10-40% in digital assets, depending on risk tolerance.

BlackRock's Brand Power

Ric Edelman attributes IBIT's dominance to BlackRock's brand recognition. "When institutional investors engage for the first time, it is the path of least resistance for approval by the board and the C-suite," he said.

The Future of Crypto ETFs

Sumit Roy, ETF.com Senior Analyst, predicts continued growth as more advisors and institutions seek regulated exposure to digital assets. "Now with regulated ETFs, those professionals are entering the space," he said.