BlackRock’s Bitcoin ETF Could Replace BTC Itself

Key Takeaways

• BlackRock’s Bitcoin ETF is reshaping crypto investment.
• The ETF has rapidly surpassed BlackRock’s Gold ETF in assets, with $51.7 billion under management.
• Analysts predict Bitcoin prices may soar to $120,000 by January 2025.

BlackRock’s iShares Bitcoin Trust (IBIT) isn’t just an investment vehicle; it has become a paradigm shift.

In 2024, IBIT captured more than $50 billion, eclipsing the company’s gold holdings—a signal that crypto could soon rival traditional safe-haven assets.

This performance has ignited debates about whether Bitcoin (BTC) exchange-traded funds (ETFs), by offering indirect exposure, will eventually replace Bitcoin’s original purpose as a decentralized asset.

The ETF That Could Replace Bitcoin

By streamlining access to Bitcoin through traditional finance, BTC ETFs are reducing the need for direct ownership.

Ryan Lee, Chief Analyst at Bitget Research, told CCN that Bitcoin ETFs will play a transformative role in advancing Bitcoin’s adoption by offering a regulated, accessible pathway for institutional investors.

This is evident in BlackRock’s ETF dominance.

Record-Setting Growth

Launched in January 2024, BlackRock’s Bitcoin ETF has already surpassed its Gold ETF in assets under management.

As of Dec. 31, the iShares Bitcoin Trust (IBIT) holds $51.7 billion in net assets, exceeding the $33 billion managed by the iShares Gold Trust (IAU).

2024 was a record-setting year for BlackRock.

The asset manager locked in net inflows exceeding $360 billion in the first three quarters, driven largely by ETFs.

The third quarter alone accounted for $220 billion, boosting total assets under management to $11.5 trillion. The iShares Bitcoin Trust reached $50.8 billion within six months.

A Shift Waiting to Happen

Analysts predict Bitcoin could hit $120,000 in January 2025, driven by ETF momentum and renewed investor optimism.

The “January effect” and external factors like FTX repayments and U.S. market trends could amplify Bitcoin’s growth.

BTCUSD descending channel formed, but support is being tested | Credit: TradingView

However, such a surge could inadvertently push investors toward BTC ETFs rather than direct Bitcoin holdings, as the price could become prohibitive for smaller investors.

This looming shift also aligns with broader trends.

In 2024, investors pulled a record $450 billion from actively managed stock funds, while crypto ETFs dominated inflows.

Spot Bitcoin, Ethereum, and MicroStrategy ETFs emerged as top performers, outpacing over 740 ETFs launched last year.

Analysts predict strong growth for crypto ETFs in 2025, with Bitcoin ETFs alone expected to draw $35 billion in inflows, and with more ETFs on the way, this number could only grow.