BlackRock, the world’s largest asset manager, has achieved a significant milestone in the cryptocurrency market. Its iShares Bitcoin Trust ETF (IBIT) currently has more net assets than the iShares Gold ETF (IAU). This is an impressive result, given that the Bitcoin ETF was only created in January 2024, whereas the Gold ETF has been operating since 2005.
As of Thursday’s market close, BlackRock’s Bitcoin ETF had a staggering.17 billion in value, while its Gold ETF trailed slightly behind with 96 billion in net assets. The Bitcoin ETF’s quick rise demonstrates institutional interest in Bitcoin as a possible value store and inflation hedge.
Bitcoin and gold have often been compared as stores of value, with Bitcoin frequently referred to as “digital gold” by cryptocurrency enthusiasts. However, Bitcoin’s recent outperformance demonstrates its growing appeal as a viable investment option.
This development marks a significant shift in the perception of Bitcoin as a legitimate asset class. It also highlights the growing influence of traditional financial institutions in the cryptocurrency market. BlackRock’s entry into the Bitcoin ETF space has legitimized the asset class and paved the way for further institutional adoption.
The success of BlackRock’s Bitcoin ETF has also led to increased competition in the space. Other asset managers are now launching their own Bitcoin ETFs, further driving the growth of the market. Overall, BlackRock’s Bitcoin ETF surpassing its Gold ETF is a landmark moment for the cryptocurrency industry. It signifies the growing acceptance of Bitcoin as a mainstream asset and paves the way for further institutional adoption.
