How BlackRock’s $45 Billion Bitcoin Initiative Outshined All Other ETFs
BlackRock’s IBIT was the most traded exchange-traded fund on Thursday, accumulating $45 billion throughout its existence. This surge followed a new all-time high for Bitcoin.
Bitcoin’s price has reached new heights — and Wall Street is eager for more.
On Thursday, as Bitcoin climbed to $111,807, BlackRock’s IBIT ETF ascended to the top of the ETF rankings.
The fund brought in $877 million.
This figure surpasses that of any other ETF on the market, noted Bloomberg ETF analyst, Eric Balchunas. This marks the first instance of BlackRock’s Bitcoin fund claiming the number one position for daily inflows.
Trading volume on Thursday exceeded $5.2 billion, marking the second highest in its history.
“Classic feeding frenzy,” Balchunas stated on X on Wednesday. “IBIT’s Pac-Man spree has now reached around $8 billion in five weeks,” while the fund has amassed $45 billion in total since its launch.
However, on Friday, Bitcoin dropped to $109,300 due to a new tariff threat from US President Donald Trump, specifically targeting the European Union.
Despite this decline, Bitcoin’s renewed record continues to attract investors.
This frenzy is partly driven by a fundamental change in institutional sentiment towards Bitcoin. The leading cryptocurrency is now viewed as both a high-growth investment and a safe-haven asset, a dual narrative that has allowed it to “decouple” from tech stocks.
Furthermore, the excitement is leading to more excitement, with Trump appointing crypto advocates to key regulatory positions, instilling hope among investors for even higher prices.
‘Dual Narrative’
Currently, there are two narratives benefiting Bitcoin.
Investors are treating Bitcoin like a tech stock, anticipating that the government may ease monetary policies if economic conditions worsen. Simultaneously, rising prices and global uncertainty are prompting traders to view it as digital gold.
“This dual narrative is what establishes a higher floor for Bitcoin,” wrote Noelle Acheson in her newsletter “Crypto is Macro Now.”
“It broadens the investor base and enhances the asset’s appeal compared to merely ‘risk assets’ or ‘gold.’”
How High
When Bitcoin enters price discovery mode, pinpointing the peak becomes challenging.
Nonetheless, some predictions have been made.
Bernstein analysts have raised their target from $150,000 to $200,000 by the end of 2025, while Utkarsh Ahuja, managing partner at Moon Pursuit Capital, previously suggested it could reach $120,000 by early June.
Maelstrom founder Arthur Hayes is confident that Bitcoin will exceed $1 million by the conclusion of Trump’s second administration in 2028.
Pedro Solimano is a markets correspondent based in Buenos Aires. Got a tip? Email him at psolimano@dlnews.com.
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