BlackRock Bitcoin Fund Hits ‘Absurd’ Growth, Eyes $100B AUM

BlackRock’s iShares Bitcoin Trust (IBIT) is on the verge of reaching $100 billion in assets under management (AUM) less than 15 months after launch, rapidly becoming the firm’s most lucrative exchange-traded fund. Fueled by soaring inflows and rising Bitcoin prices, the fund has posted significant growth and now outpaces legacy ETFs in speed to scale.

Background: Record-Breaking Growth

Launched in early 2024, BlackRock’s IBIT has amassed nearly $98–$100 billion in AUM in just 435 days. This growth trajectory is unmatched among ETFs, with IBIT poised to become the fastest fund ever to cross the $100 billion mark—far outpacing the 2,011 days it took for Vanguard’s S&P 500 ETF (VOO) to achieve the same milestone.

According to Bloomberg analyst Eric Balchunas, IBIT is now the most profitable ETF in BlackRock’s portfolio, generating approximately $244–$245 million in annualized revenue through its 0.25% management fee. Balchunas described its ascent as “absurd” and indicative of explosive investor interest.

$IBIT a hair away from $100 billion, is now the most profitable ETF for BlackRock by a good amount now based on current AUM. Check out the ages of the rest of the Top 10. Absurd. pic.twitter.com/E8ZMI2wynx

— Eric Balchunas (@EricBalchunas) October 6, 2025

Flow Surge and Market Response

Demand for Bitcoin ETFs soared recently, with U.S. spot Bitcoin ETFs attracting nearly $1.2 billion in net inflows during one trading day. IBIT recorded roughly $970 million of that, cementing its dominance as a key entry point for institutional and retail exposure to Bitcoin.

As over 50% of ETF inflows targeted IBIT, analysts note that such large-scale buying can impact spot Bitcoin prices considerably. Historically, spikes in ETF inflows often align with local price peaks, adding volatility to the crypto market.

Market Impact and Associated Risks

The rapid expansion of IBIT brings notable risks and market considerations. ETF prices may diverge from their net asset value during periods of stress, and regulatory changes—either in the U.S. or internationally—could affect investor flows and operating dynamics.

Competition from lower-fee products by rival issuers may introduce pricing pressure and affect IBIT’s revenue moving forward. Additionally, while growth in early stages is steep, maintaining the same momentum as the fund scales will be increasingly challenging.

Product Mechanics and Future Strategy

IBIT operates through daily creation and redemption mechanisms supported by authorized participants, with robust custody solutions for Bitcoin storage. BlackRock has filed for additional products, including a potential “premium income” Bitcoin ETF that may use covered call strategies to generate yield.

The firm has also established legal and trust entities as part of a broader strategy to meet rising demand and diversify its crypto investment offerings.

Featured image via Newscom, charts from TradingView