BlackRock's bitcoin ETF has surpassed its gold ETF in net assets just months after debut

Spot bitcoin exchange-traded funds debuted less than a year ago and have already been labeled the most successful ETF launches ever. BlackRock's Bitcoin ETF just passed another significant milestone.

As of Nov. 7, the iShares Bitcoin Trust (ticker IBIT) has net assets of around $33.17 billion, while its iShares Gold ETF (IAU) sits at around $32.9 billion in net assets. IBIT began trading in January 2024 and IAU began trading in January 2005.

"Absolutely wild," ETF Store President Nate Geraci said in a post on X . This milestone came the same day IBIT generated $1.1 billion in net inflows, marking a new record amount of single-day inflows.

"[Trump's victory], combined with the Fed rate cut on Thursday, spurred institutions to make the plunge into crypto markets," said Jeff Mei, COO of BTSE. "With more rate cuts coming, the prospect of pro-crypto regulations, and a continued China stimulus, it makes sense that institutions are flocking to Blackrock's Bitcoin ETF, and we expect even more in the coming months."

The 12 spot bitcoin ETFs have now generated $25.5 billion in net inflows since their January launch.

"Continue to rewrite ETF history books. And remember, these still aren’t fully available on most large wirehouse platforms (or at all on Vanguard)," Geraci said on X .

BlackRock's Bitcoin ETF is certainly the biggest of the new entrants, but the same can't be said for its gold counterpart. State Street's SPDR funds include some of the largest and oldest ETFs on the market. The SPDR Gold Shares (GLD), for example, has a total net asset value of $75.5 billion.

What's ahead for IBIT?

A recent study from Schwab shows investors have their eyes set on cryptocurrency over the next year. Millennials in particular report higher levels of interest in a host of ETF types, with crypto near the top of the list.

"Millennial ETF investors have the strongest appetites for ETFs and are most interested in more personalized ways to invest," Schwab said . "They have higher levels of interest in direct indexing and are more likely than other generations to invest in direct indexing in the next year."

Meanwhile, the U.S. Securities and Exchange Commission in September approved BlackRock’s proposal to list and trade options for its spot bitcoin ETF. Retail traders typically use options for speculation, while larger institutions use options as a hedge.

"Counter to common opinion, options actually reduce volatility," market structure analyst Dennis Dick previously told The Block. "As open interest rises, it creates natural buyers and sellers on both sides of the market… This thickens up the market and increases liquidity, which therefore reduces volatility."