Why Is BlackRock's IBIT Bitcoin ETF Soaring?
BlackRock's iShares Bitcoin ETF (IBIT) has seen a resurgence, attracting approximately $1.1 billion in net investments, reaching over $70 billion in assets under management within 341 days. This rapid growth reflects increased interest from investment advisors and institutions, traditionally slow to adopt ETFs. Investment advisors now hold about 20% of spot Bitcoin ETF shares, with expectations that this will rise to 35-40% as adoption increases. The Trump administration's relaxed regulations have contributed to Bitcoin's price surge, recently trading near $105,000. A study indicates nearly 20% of financial advisors plan to allocate crypto in 2025, up from the previous year. Ric Edelman advocates for higher digital asset allocations in portfolios, suggesting a shift from traditional investment models. The brand strength of BlackRock is seen as a key factor in attracting institutional investors to IBIT. Regulated ETFs are expected to facilitate further entry of advisors and institutions into the crypto space.
