BlackRock Bitcoin ETF surpasses $51B in AUM

BlackRock's Bitcoin (CRYPTO:BTC) ETF, known as IBIT, has achieved a significant milestone by surpassing the total assets under management (AUM) of over 50 regional European ETFs combined, some of which have been in existence for more than 20 years.

This remarkable achievement highlights the rapid rise of IBIT in the cryptocurrency market.

Recent data shows that Bitcoin ETFs are experiencing record inflows, with BlackRock leading the way by holding nearly half of all Bitcoin ETF assets.

ETF analyst Todd Sohn revealed this surprising statistic, emphasizing the stark contrast between IBIT's success and the performance of traditional European ETFs.

“IBIT already has as much in assets as the 50 European focused ETFs (region + single country) COMBINED, and they’ve been around for 20 years,” stated Bloomberg analyst Eric Balchunas.

Sohn further noted the challenges faced by European ETFs, including outflows, a lack of new products, and underperformance over generations.

Since its launch in January, BlackRock's IBIT has dominated the Bitcoin ETF market. Following Donald Trump’s election victory, IBIT surpassed its previous all-time high and even outperformed BlackRock’s gold-based ETF.

The momentum for Bitcoin ETFs has remained strong, with November seeing the highest net inflow on record at $6.1 billion, primarily driven by BlackRock’s IBIT.

In the first week of December, Bitcoin ETFs experienced the second-largest weekly inflow to date, again led by IBIT.

Currently, BlackRock's fund boasts over $51 billion in net assets, representing nearly half of the entire spot Bitcoin ETF market in the United States.

The firm has also made headlines for its substantial holdings; last week, all 12 spot ETFs collectively owned more Bitcoin than Satoshi Nakamoto, with nearly half of those holdings attributed to BlackRock.

This trend reflects a growing institutional acceptance of Bitcoin and cryptocurrency overall. 

However, institutions that are slow to adapt may find themselves left behind. 

In contrast to BlackRock's success, European regulators have taken a harsher stance on cryptocurrency, as indicated by recent comments from European Central Bank economists suggesting price controls on Bitcoin. 

The underperformance of European ETFs may be a reflection of this regulatory environment.

At the time of reporting, the Bitcoin price was $96,331.11.