BlackRock’s Bitcoin ETF Soars to $30 Billion: Could It Hit 1 Million BTC?

In less than ten months since its debut, BlackRock’s spot Bitcoin exchange-traded fund (ETF) has rocketed past $30 billion in holdings, capturing the rising interest in Bitcoin amid global economic shifts. Launched on January 10, the ETF has steadily gained ground, positioning BlackRock as one of the largest institutional players in Bitcoin.

BlackRock’s Bitcoin ETF now controls over 417,000 BTC, valued at $30.4 billion, as per the latest figures. Interestingly, demand for Bitcoin ETFs has surged as the U.S. presidential election nears on November 5, with net inflows on October 29 reaching $870 million—the second-highest since a record inflow of over $1 billion back in March.

The rapid accumulation marks an all-time record for ETF growth, with Bloomberg’s senior ETF analyst, Eric Balchunas, emphasizing that BlackRock’s fund hit this milestone in a mere 293 days, outpacing previous records by massive margins. By February 15, spot Bitcoin ETFs in the U.S. held approximately 75% of new Bitcoin investment, which contributed to Bitcoin briefly topping the $50,000 mark. Bitcoin ETFs are now on the verge of a major milestone, with cumulative holdings nearing 1 million BTC—around $71.7 billion in value—poised to surpass Satoshi Nakamoto’s holdings of 1.1 million BTC as early as November.

Analysts have diverging views on the implications. Some see this ETF surge as paving the way for Bitcoin’s price to reach a new all-time high, with Bitfinex predicting a potential $80,000 rally by the end of 2024. However, others caution that this rally could be more speculative, viewing it as a hedge against macroeconomic uncertainties rather than a result of strong fundamentals.