BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has officially surpassed the firm’s long-established iShares Gold Trust (IAU) in net assets, reaching $34.3 billion as of November 8. This milestone highlights the growing demand for Bitcoin-linked investment products, which have seen a surge in inflows following Donald Trump’s presidential election victory.

According to Bloomberg, IBIT recorded an inflow of $1.1 billion on November 7, marking its largest single-day volume to date. Since its launch in January, the ETF has attracted more than $27 billion, becoming the fourth best-performing ETF globally in terms of inflows this year. In comparison, IAU, which launched in 2005, holds just under $33 billion, showing that IBIT’s growth has quickly outpaced traditional investment vehicles like gold ETFs, as many investors increasingly consider Bitcoin a form of "digital gold."

Analysts attribute the spike in IBIT’s growth to both Trump’s election win and a rally in Bitcoin, which reached an all-time high of $76,956 on November 8. Eric Balchunas, Bloomberg ETF analyst, noted that the election results fueled interest in Bitcoin, with IBIT’s inflow momentum building immediately after the outcome. This trend is expected to persist as investors anticipate a favorable regulatory environment for digital assets under the new administration.

The recent market rally has bolstered investor confidence in Bitcoin ETFs, which now account for several of the year’s top-performing ETF launches. Of the roughly 400 ETFs launched in 2024, four of the most successful products by inflows have been spot Bitcoin ETFs, according to Nate Geraci, president of The ETF Store.

While IBIT has surpassed BlackRock’s gold ETF, it still trails behind the largest gold ETF, SPDR Gold Shares (GLD), which has over $76 billion in assets. However, IBIT’s rapid ascent in just ten months underscores a growing institutional shift towards Bitcoin, with many market participants viewing it as a hedge against inflation and economic uncertainty.

Looking forward, the inflow into Bitcoin-linked products is expected to remain strong. With Trump’s election signaling a potentially favorable climate for Bitcoin and the Federal Reserve’s recent interest rate cuts, analysts believe that momentum for Bitcoin ETFs could drive further growth in the market. “There’s a plethora of call strikes running from $80,000 to $100,000, and this should further add momentum,” Philpott added, suggesting that Bitcoin could be on track for even higher valuations.

Bloomberg Article