DeutschWall Street has a new darling – and it’s called Bitcoin. The world’s largest asset manager, BlackRock, now earns more with its Bitcoin ETF IBIT than with two of its oldest and most traditional funds. According to data from Bloomberg analyst Eric Balchunas, the Bitcoin spot ETF brought the financial giant around 245 million US dollars into its coffers in 2024 alone. IBIT not only surpasses its competition, but also in-house heavyweights such as the «iShares Russell 1000 Growth ETF» (IWF) and the «iShares MSCI EAFE ETF» (EFA).
Bitvavo, one of the leading exchanges from Europe (Netherlands) with a large selection of cryptocurrencies. PayPal deposit possible. For a limited time only: 10 Euro bonus when you sign up via CoinPro.ch
The success is like a small revolution. Because the two displaced funds have been considered reliable sources of income for over two decades. The IWF, launched in May 2000, bundles US companies with strong growth potential and currently manages around 122 billion dollars. The EFA, launched in August 2001, invests in stocks from developed markets outside North America and has a volume of approximately 70 billion dollars.
BlackRock Earns more from Bitcoin than from 25-Year-Old Funds
And now comes the newcomer from the crypto world – and makes both look old. BlackRock’s Bitcoin ETF reached assets under management of 97.7 billion dollars in just 435 days. For comparison: The S&P 500 index fund from competitor Vanguard, previously the record holder, needed 2011 days for this – almost six years. If the course continues like this, IBIT will be the fastest fund of all time to break the 100 billion dollar mark.
That a crypto fund would break these records would have been hardly imaginable just a few years ago. For a long time, Bitcoin was considered a playground for speculators on Wall Street, too volatile, too uncertain. But the mood has changed. BlackRock CEO Larry Fink, once an avowed crypto skeptic, now speaks openly of a «new asset class» and praises the transparency and efficiency of blockchain technology.
BTC Has Finally Arrived in the Mainstream
For investors, the success of IBIT should be a signal: Bitcoin has finally arrived in the mainstream. The ETF offers institutional investors access to the cryptocurrency without having to set up their own wallets or store coins themselves – a decisive advantage in an industry characterized by security issues and regulations.
The fund’s triumph is also economically impressive. BlackRock earns from every traded share, and the volume grows daily. According to Balchunas, IBIT was the most profitable ETF in the entire BlackRock portfolio in 2024 – despite the fact that the fund has only been officially on the market since the beginning of the year.
Interesting: Deutsche Bank: Why you should have Bitcoin on your radar
This is a warning signal for the competition. If Bitcoin maintains its momentum and regulation in the USA continues to progress, classic fund managers could come under increasing pressure. Because what was previously considered a marginal phenomenon is becoming a profit engine. With IBIT, BlackRock is not only writing a success story for itself, but also a new chapter for the financial world. What began as an experiment could turn out to be a turning point in investment history – with Bitcoin as the new gold of the digital age. (mck)
