$1 of every $4 BlackRock makes from ETFs is from Bitcoin

Bitcoin (BTC) ETFs are dominating BlackRock’s earnings, accounting for 26% of its exchange-traded fund profits.

Founded and run by Larry Fink, BlackRock is responsible for the largest BTC spot fund in the world, the iShares Bitcoin Trust (IBIT). In 2024, this fund accumulated inflows of close to US$16.6 billion, standing out as a phenomenon in the financial market.

The explosive growth of Bitcoin ETFs at BlackRock is clear proof of the positive impact and rapid adoption by new investors. Just six months after the implementation of these ETFs in the United States, IBIT has already positioned itself as the 31st largest market capitalization among the 433 ETFs offered by BlackRock.

According to Bloomberg expert and analyst Eric Balchunas, total inflows into BlackRock ETFs in 2024 amounted to $65 billion. Of this amount, US$16.6 billion comes from the Bitcoin fund. This remarkable performance has placed IBIT as a leader in the Bitcoin ETF market, surpassing even the Grayscale Bitcoin Trust (GBTC).

ETF de Bitcoin da BlackRock

On May 28, 2024, BlackRock, through IBIT, surpassed GBTC, becoming the largest Bitcoin ETF in the world after raising 291,563 BTC, equivalent to more than US$20 billion. This feat is even more impressive considering that BlackRock currently offers 433 ETFs, totaling nearly $3 billion in assets.

The inclusion of Bitcoin in BlackRock’s ETFs not only increased the company’s profits, but also caused significant movements in the price of BTC due to the demand generated.

Over the past six months, money flows into these ETFs have resulted in a rise in the value of Bitcoin, driven by the greater ease for investors to inject capital into the digital ecosystem.

In addition to BlackRock, other companies have also benefited from Bitcoin ETFs. Fidelity, for example, with its ETF Wise Origin Bitcoin Fund (FBTC), recorded revenues close to $8.9 billion in the first half of 2024. This amount represented 56% of Fidelity’s ETF earnings, showing the strong demand for financial products linked to Bitcoin.

On June 4, 2024, Fidelity’s FBTC received $378 million, almost half of the total flows of all US Bitcoin ETFs, which amounted to $887 million. These numbers reinforce the central role that Bitcoin ETFs play in today’s financial market.