BlackRock Inc., the world’s largest asset manager, saw its iShares Bitcoin Trust (IBIT) reach $91.06 billion in assets under management (AuM), setting a new U.S. record for spot Bitcoin exchange-traded funds (ETFs).
An ETF is an investment fund traded on stock markets that lets investors gain exposure to assets, in this case, Bitcoin, without directly owning them.
SoSoValue Data Highlights Massive Inflows
According to SoSoValue, a crypto market tracker, IBIT has attracted $58.04 billion in cumulative net inflows since launching in January 2024, even though no new money flowed in on August 13.
The ETF closed at $69.84 that day, trading at a 0.57% premium to its net asset value. IBIT now holds 3.72% of all Bitcoin in circulation, with 54.82 million shares valued at $3.79 billion.
Other U.S. Bitcoin ETFs lag far behind, Fidelity’s FBTC ranks second with $24.77 billion in assets, while Grayscale’s GBTC holds $22.18 billion despite recording $23.72 billion in outflows.
Bitcoin Price Swings After Hot Inflation Data
The record comes as Bitcoin’s price briefly surged to nearly $124,000 on Wednesday, fueled by expectations of a U.S. interest rate cut. However, hotter-than-anticipated Producer Price Index (PPI) inflation numbers in July triggered a sell-off that saw Bitcoin fall to below 118,000. The drop erased more than $930 million in leveraged positions and caused over $1 billion in total crypto liquidations within 24 hours.
The popularity of BlackRock highlights the increasing institutional investor appetite in the form of hedge funds and ordinary traders in the U.S. to have regulated exposure to Bitcoin.
Also Read: Treasury Secretary Bessent Says US Might Expand Bitcoin Reserve
