BlackRock’s iShares Bitcoin Trust (IBIT) has emerged as a top performer this year, attracting more capital than the largest gold-backed ETF. According to Bloomberg Senior ETF analyst Eric Balchunas, IBIT has seen impressive year-to-date inflows, ranking as the US’ sixth-highest fund in terms of capital influx.
Since January, IBIT has pulled in over $6.9 billion, surpassing the SPDR Gold Shares (GLD) which recorded around $6.5 billion in the same period despite a 23% surge in returns. This significant achievement comes at a time when gold hit a new all-time high of $3,500 per ounce and its share of global reserves reached a 26-year high at 18%.
Balchunas noted that IBIT’s performance is a testament to the confidence in Bitcoin ETFs, especially when compared to gold. He expressed optimism in the long-term potential of IBIT, stating that attracting more cash than gold under current market conditions signals a bright future for Bitcoin ETFs. He predicted that BTC ETFs could potentially surpass gold’s assets under management within the next 3-5 years.
IBIT’s success can be attributed to its consistent inflows over the past three weeks, outpacing other spot Bitcoin ETFs in the market. SoSo Value data shows that IBIT is the only US-listed Bitcoin ETF to have continuous inflows for 15 consecutive trading sessions. In the last week alone, the fund added nearly $2.5 billion in net inflows, with an additional $531 million on May 5.
ETF Store President Nate Geraci highlighted a shift in market participants, suggesting that a more diverse and institutional audience is now engaging with Bitcoin ETFs. This trend reflects the growing demand for regulated exposure to BTC, especially in uncertain macroeconomic times. ETFs like IBIT serve as a bridge for traditional investors to access the crypto market without directly owning the assets, further solidifying Bitcoin’s role in modern portfolios.
The impressive performance of IBIT underscores the increasing mainstream acceptance of Bitcoin as a legitimate investment option. As institutional interest continues to grow, Bitcoin ETFs are poised to play a pivotal role in shaping the future of digital asset investment.