Spot Bitcoin ETFs: iShares Bitcoin Trust Dominates in a Record-Breaking Debut Year

In their inaugural year of trading, spot Bitcoin (BTC-USD) exchange-traded funds (ETFs) attracted billions in investments, making cryptocurrency more accessible to mainstream investors. However, not all Bitcoin ETFs performed equally, with the iShares Bitcoin Trust (IBIT) emerging as the undisputed leader.
Record-Breaking Inflows for iShares Bitcoin ETF
Since their launch on January 11, 2024, spot Bitcoin ETFs have collectively seen net inflows of approximately $36.2 billion, according to Farside Investors. The IBIT alone accounted for nearly $38 billion of these inflows, dwarfing its competitors.
- Assets Under Management (AUM): As of January 19, 2025, IBIT’s AUM reached $52.9 billion, far surpassing its peers.
- Speed to Milestones: IBIT achieved $50 billion in AUM in just 227 trading days, shattering the previous record of 1,323 days set by the iShares Core MSCI Emerging Markets ETF (IEMG).
- Trading Volume: On several occasions, daily trading volumes for spot Bitcoin ETFs exceeded $5 billion, highlighting their popularity among investors.
IBIT vs. Competitors
While IBIT dominated the market, a few other ETFs also managed to secure significant inflows:
- Fidelity Wise Origin Bitcoin Fund (FBTC): The only other ETF to garner more than $10 billion in inflows.
- Bitwise Bitcoin ETF (BITB) and ARK 21Shares Bitcoin ETF (ARKB): These funds also saw inflows in the billions, albeit much smaller than IBIT’s.
In comparison, ETFs like Franklin’s EZBC, Invesco’s BTCO, Valkyrie’s BRRR, VanEck’s HODL, and WisdomTree’s BTCW attracted less than $1 billion each, barely making an impact.
Grayscale Bitcoin Trust’s (GBTC) Mixed Results
GBTC’s performance presented a more nuanced picture. While it experienced significant outflows of $1.6 billion during the year, it remains one of the largest spot Bitcoin ETFs by AUM, depending on daily market fluctuations.
- Outflows Impact: The fund’s sizable outflows stemmed partly from its prior existence as a non-ETF financial product before the approval of spot Bitcoin ETFs.
- Spin-off Factor: Some of GBTC’s assets were transferred to the Grayscale Bitcoin Mini Trust ETF (BTC), further diluting its inflows.
Bitcoin ETFs vs. Gold ETFs
IBIT’s performance also signaled a significant challenge to traditional gold ETFs, often seen as a benchmark for asset security.
- IBIT surpassed iShares’ gold ETF (IAU) in AUM.
- It is now closing in on the SPDR Gold Shares (GLD), the world’s largest gold ETF with $75 billion in AUM.
Looking Ahead
The first year of spot Bitcoin ETFs has reshaped the cryptocurrency investment landscape. While IBIT’s dominance and record-breaking performance underscore the strong demand for crypto-focused financial products, the performance disparity among funds suggests a competitive and evolving market.
As the regulatory environment stabilizes and investor interest in Bitcoin persists, the next year will reveal whether IBIT can maintain its lead or if challengers will emerge to disrupt its reign.