In April 2024, BlackRock’s Bitcoin ETF, IBIT, raised $2.45 billion, dominating the market with 80% of total inflows. This surge comes as investors seek alternatives amidst geopolitical uncertainty. BlackRock’s influence in the ETF arena is significant, controlling over 50% of the market share. Its leaders advocate for Bitcoin’s unique value, marking a notable divergence from traditional assets.
BlackRock has had a remarkable month with its Bitcoin exchange-traded fund (ETF), known as IBIT. In April alone, it managed to draw in a staggering $2.45 billion, which translates to an impressive 80% of the total $3 billion flowing into the Bitcoin ETF market for that period. This dominance has allowed the firm to capture over 50% market share, so rival firms are really feeling the pressure.
It’s not just the numbers that stand out; BlackRock’s IBIT is setting a blistering pace in the Bitcoin ETF landscape. Only this week, BlackRock was the sole ETF provider reporting positive inflows — a rarity in what has become a tumultuous marketplace. Investors in IBIT piled on $972 million worth of Bitcoin on Monday, then followed up with $217 million on Tuesday, leaving competitors facing outflows.
This surge in investments comes at a time when Donald Trump’s trade war with China has shaken traditional asset classes. Investors, spooked by geopolitical instability, are looking for safe havens and have turned to both Bitcoin and gold as alternatives. Bitcoin’s price has been holding up surprisingly well, gaining about 13% over the past month, while stocks are struggling and the dollar is sliding. Currently, Bitcoin trades around $94,000, although it has dipped 1.3% in the last 24 hours.
Some industry experts are saying Bitcoin is decoupling from tech stocks, a sentiment echoed by CNBC anchor Scott Wapner during a recent broadcast. This trend seems to be working in BlackRock’s favour, which is no small feat given the sheer size of its operations.
One reason behind BlackRock’s ability to reel in such a massive capital concentration is its status as the world’s largest asset manager, overseeing over $12 trillion in assets. This vast pool of capital creates a powerful self-reinforcing liquidity network. Moreover, some of BlackRock’s executive leaders have become prominent advocates for Bitcoin adoption. Jay Jacobs, head of US equity at BlackRock, said last week a broader view reveals how Bitcoin fundamentally differs from traditional assets.
Jacobs asserted that “crypto over the long run is decoupled from tech stocks,” emphasizing that institutional investors are currently fixated on Bitcoin. Meanwhile, Samara Cohen, BlackRock’s CIO for ETF and Index Investments, confirmed this trend on Monday, reiterating that institutional focus remains squarely on Bitcoin.
Since their introduction in January 2024, Bitcoin ETFs have shattered prior records, now managing 1.1 million Bitcoin valued at around $106 billion. On the ETF front, BlackRock holds approximately 50% of the market segment, overseeing $53 billion in Bitcoin assets. In contrast, Fidelity Digital Assets follows with $18 billion, taking a 17% market share, while Grayscale accounts for 16% with $17 billion in Bitcoin under management. In summary, BlackRock is not just part of the ETF story; it’s the driving force that’s reshaping the entire landscape.
Pedro Solimano, a markets correspondent in Buenos Aires, can be contacted for tips at [email protected].
