The cryptocurrency market had a huge year in 2024, and BlackRock’s iShares Bitcoin Trust (IBIT) was right at the center of it all. It became the fastest-growing exchange-traded fund (ETF) in history, pulling in an incredible $37 billion in net inflows. Bitcoin (BTCUSD) itself more than doubled in price during the year, thanks to big moves like the SEC approving spot Bitcoin ETFs and growing excitement about President-elect Donald Trump’s return to office.
IBIT has taken the lead among crypto ETFs, grabbing nearly half (49.7%) of market share and leaving its competitors far behind. This all happened as Bitcoin smashed through its 2021 peak of $70,000 to hit a new high of $108,226.
Institutional investors, like pension funds, are now pouring money into Bitcoin ETFs like IBIT, especially with Trump’s campaign promises to create a Strategic National Bitcoin Reserve and replace SEC Chairman Gary Gensler with crypto-friendly Paul Atkins. Analysts are even predicting Bitcoin could hit $200,000 by 2025.
IBIT’s rapid growth shows how much the crypto world is shifting — moving away from the scandals of 2023 and becoming more accepted by mainstream investors. With Bitcoin ETFs pulling in $17 billion in just nine months, IBIT is shaping up to be one of the most exciting investment opportunities ahead of Trump’s potential political changes.
Overview of BlackRock’s iShares Bitcoin Trust (IBIT)
BlackRock’s iShares Bitcoin Trust (IBIT) has quickly made a name for itself, breaking records to become the fastest-growing ETF ever— achieving this milestone in just 11 months since its launch in January 2024.
As the first spot Bitcoin ETF from BlackRock, the world’s largest asset manager, IBIT has taken the market by storm. Its strategy is simple but effective: It gives investors a way to directly invest in Bitcoin through a regular brokerage account without the hassle of figuring out how to buy, store, or secure Bitcoin themselves.
This has made Bitcoin investing much easier and more accessible for both big institutions and everyday investors, with BlackRock’s trusted reputation adding an extra layer of confidence.
The ETF is designed to track Bitcoin’s performance, with 100% of its holdings allocated to the cryptocurrency. To ensure security, BlackRock works with Coinbase, a well-known cryptocurrency custodian, to store its Bitcoin holdings safely. This partnership means IBIT benefits from Coinbase’s top-tier security while keeping everything transparent and trustworthy for investors.
This straightforward approach has delivered impressive results. Over the last six months, IBIT has gained 55.39%. After dropping to a low of $28.23 on Aug. 5, it bounced back, reaching a high of $61.75 in mid-December — a massive 87.92% return from its lowest point.
These numbers highlight how well IBIT has taken advantage of Bitcoin’s broader market rally while providing investors with a regulated and familiar investment option.
IBIT’s presence in the market is just as impressive as its performance. It now manages $51.74 billion in assets and averages over 30 million shares traded daily, making it the largest spot Bitcoin ETF in the world. This level of dominance shows just how much confidence investors have in IBIT and makes it easier for large investors to buy or sell without causing big swings in price.
While IBIT doesn’t pay dividends like some other investments, its real value lies in how efficient and accessible it is for gaining exposure to Bitcoin. With an expense ratio of just 0.12%, or $12 on an initial $10,000 investment, it’s one of the cheapest ways to invest in Bitcoin through traditional markets.
For long-term investors looking to add digital assets to their portfolios without breaking the bank, IBIT offers a secure and affordable option — especially now, as Donald Trump’s upcoming inauguration is expected to bring even more attention and energy to the crypto market.
Why IBIT Is the Crypto ETF to Watch Ahead of Trump’s Inauguration
Several key factors have driven IBIT’s incredible growth, with Donald Trump’s election win playing a major role. His pro-crypto stance, including promises to create a Strategic National Bitcoin Reserve and appoint crypto-friendly Paul Atkins as SEC Chairman, has sparked a wave of optimism.
Bitcoin’s price surged 41% after Trump’s victory, hitting an all-time high above $108,000, and IBIT has ridden that momentum to become the go-to option for both institutional and retail investors wanting exposure to Bitcoin.
One of the big reasons for IBIT’s rise is its introduction of options trading in November 2024. These options have quickly become some of the most traded ETF derivatives, averaging $1.7 billion in daily volume — far outpacing competitors like Fidelity and Grayscale.
This move has made IBIT even more appealing, giving investors more tools to manage their portfolios and hedge risks. BlackRock’s reputation as a financial powerhouse, managing over $11 trillion in assets, has also played a huge part in IBIT’s success.
CEO Larry Fink’s shift from calling Bitcoin a money-laundering tool to now embracing it as “digital gold” has boosted confidence among big institutions. Since its launch, IBIT has only seen nine days of outflows and consistently captures over 50% of daily trading volume among Bitcoin ETFs.
Conclusion
In a market primed for explosive growth, BlackRock’s iShares Bitcoin Trust (IBIT) stands out as the ultimate way to ride the crypto wave ahead of Donald Trump’s inauguration. With its record-breaking growth, unmatched market dominance, and direct exposure to Bitcoin’s rally, IBIT offers investors a low-cost, secure, and highly liquid option to capitalize on crypto’s surging optimism.
