Blackrock’s Bitcoin ETF Surpasses Its Gold ETF, Worth $33B

Blackrock’s iShares Bitcoin trust ETF (IBIT) has officially surpassed the iShares Gold Trust ETF (IAU) in net assets, achieving this in less than a year since its launch in January 2024. As of November 7, 2024, the iShare Bitcoin (BTC) ETF holds assets of approximately $33.17 billion, while the iShare Gold ETF, which was launched in 2002, has assets valued at around $32.96 billion according to Nate Geraci, President of the ETF Store.

This rapid rise indicates the growing adoption of BTC as a mainstream investment, positioning it as a potential alternative to traditional assets like gold.

iShares Bitcoin ETF (IBIT) has now surpassed iShares Gold ETF (IAU) in assets…

Did this in 10mos.

IAU launched in January 2005.

Absolutely wild. pic.twitter.com/dLi16A28Gc

— Nate Geraci (@NateGeraci) November 8, 2024

Bitcoin’s Rise in Institutional Investment

The surge in assets under management (AUM) for the iShares Bitcoin ETF reflects increasing institutional confidence in BTC as a store of value.

Factors driving this growth include greater regulatory clarity, the expanding global infrastructure for digital assets, and the recognition of Bitcoin as a hedge against inflation.

Unlike gold, which has long been seen as a stable asset during economic downturns, BTC offers investors both a store of value and high growth potential, drawing significant interest from a younger, tech-savvy audience.

A New Era for Safe-Haven Assets

The success of the Bitcoin ETF in such a short span contrasts sharply with the traditional timeline for golf ETFs. While the iShares Gold ETF took nearly two decades to reach it current assets, the Bitcoin ETF achieved similar levels in just 10 months. This suggest shift in investor sentiment, where digital assets are increasingly viewed not just as speculative investments but as serious contenders for long-term portfolios.

Analysts speculate that if BTC continues on this trajectory, more traditional investors may diversify their portfolios to include both gold and BTC, leveraging the strengths of each asset.

This milestone not only highlights the evolving financial landscape but also serves as a benchmark in the integration of digital assets into mainstream finance. As institutional adoption of BTC accelerates, the future of investment portfolios may indeed look different, with BTC sharing the spotlight alongside gold as a staple asset for wealth preservation.

Also Read: Bitcoin as a Reserve Asset: Tom Lee’s Idea to Tackle U.S. Deficit