BlackRock’s Bitcoin ETF Will Soon Flip Its Gold ETF

Data confirms BlackRock’s Bitcoin ETF is rapidly closing in on its Gold ETF in assets under management (AUM) despite launching just nine months ago.

Amid gradual recovery of the primary crypto, Bitcoin, BlackRock’s iShares Bitcoin Trust is quickly closing the gap with its long-established iShares Gold Trust in assets under management.

Steno Research’s senior crypto analyst Mads Eberhardt described this emerging trend as “the real flippening.” The rapid rise of the Bitcoin ETF is impressive, especially when compared to the relatively stable performance of BlackRock’s Gold ETF.

For context, BlackRock introduced its iShares Gold Trust (IAU) in January 2005. Over nearly two decades, this product has grown steadily, reaching an AUM of $32.5 billion by 2024, data from BlackRock’s official website confirms. 

While the gold ETF continues to be a popular choice for investors, its growth has plateaued throughout the year. By contrast, BlackRock’s Bitcoin ETF, launched on January 11, 2024, has attracted $25.8 billion in AUM in just nine months. Eberhardt’s analysis suggests that at this current pace, BlackRock’s Bitcoin ETF will soon overtake the Gold ETF.

The real flippening

On January 21, 2005, BlackRock introduced its Gold ETF. Over the span of nearly 20 years, it has accumulated $32.5 billion in assets under management.

Fast forward 19 years to January 11, 2024—BlackRock launched its Bitcoin ETF. In just nine months, it has… pic.twitter.com/sbO7xdSsWw

— Mads Eberhardt (@MadsEberhardt) October 18, 2024

Bitcoin ETF Growth on Momentum

The rising interest in Bitcoin ETFs has been evident throughout 2024. A chart shared by Eberhardt illustrates how the AUM of the iShares Gold Trust has remained relatively stable during the year.

However, the iShares Bitcoin Trust has seen rapid growth, particularly around February and in October. This has led analysts to speculate on the potential bullish impact on Bitcoin’s market price. As more institutional funds are allocated to Bitcoin through ETFs, the heightened demand is likely to drive the price higher.

Maartunn, an analyst at CryptoQuant, has noted the correlation between BlackRock’s Bitcoin accumulation and the price performance of BTC. His analysis points to BlackRock’s significant buying activity, which has aligned with periods of strong price appreciation for Bitcoin. According to him, BlackRock’s inflows could play an important role in driving Bitcoin’s price to its all-time high.

Institutional Interest Drives the Net Flows

As of Thursday, Bitcoin ETFs have collectively amassed $20.7 billion in net flows, with BlackRock’s iShares Bitcoin Trust leading the charge. Fidelity Investments’ Bitcoin ETF is also seeing strong inflows, closely trailing BlackRock’s offering.

According to Eric Balchunas, a senior ETF analyst at Bloomberg, the rapid growth of Bitcoin ETFs contrasts sharply with the time it took for gold ETFs to reach similar levels. Notably, Gold ETFs took nearly five years to amass $20 billion in net flows.