BlackRock iShares Bitcoin Trust (IBIT) Spot Bitcoin ETF – In-Depth Analysis (2)
Fund Mechanics & Early Performance Metrics
Welcome back to SignalBoat’s deep-dive series on the world’s fastest-growing Bitcoin ETF — BlackRock’s iShares Bitcoin Trust (IBIT).
In Part 1, we explored how IBIT came to life and how BlackRock navigated over a decade of SEC denials to finally secure regulatory approval in January 2024.
Today in Part 2, we’ll uncover how the ETF works under the hood — from its custody and pricing design to the record-breaking inflows and AUM growth that made IBIT one of the largest ETFs in history.
3. Performance Metrics: AUM, Daily Volume, and Net Flows
Explosive AUM Growth
IBIT’s rise was nothing short of extraordinary. Within the first four trading days, the fund amassed over $1 billion in assets — a record-breaking debut for any ETF.
reuters.com
By March 2024, IBIT surpassed $10 billion in AUM, becoming the fastest ETF in history to cross that threshold — achieving in 49 trading days what SPDR Gold Shares (GLD) took over two years to reach.
etfstream.com
theblock.co
Analysts estimate that over 75% of IBIT’s early AUM growth came from net new inflows rather than Bitcoin price appreciation — a sign of genuine investor demand.
etfstream.com
By October 2025, IBIT reached $98.5 billion in assets, making it one of the largest ETFs in the world — and the most profitable in BlackRock’s lineup, generating over $240 million in annual fee revenue.
blackrock.com
coindesk.com
Bloomberg ETF analyst James Seyffart noted that IBIT was on pace to reach $100 billion AUM in just 435 trading days, compared to 2,011 days for Vanguard’s VOO — highlighting an adoption speed never before seen in ETF history.
coindesk.com
Liquidity and Trading Volume
IBIT rapidly became the most liquid crypto-related security in the U.S., with deep trading activity on Nasdaq.
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Average Daily Volume (Oct 2025): ~46.4 million shares
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Typical trading range: 60–70 million shares per day on high-volume days
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Notional daily turnover: $3–5 billion
This liquidity drew in institutions, market makers, and arbitrage desks. Tight bid-ask spreads (as low as 0.02%) made IBIT ideal for both short-term traders and long-term allocators.
On July 14, 2025, Bitcoin ETFs recorded one of their largest collective inflow days ever — $1.2 billion, of which $970 million went into IBIT alone.
coindesk.com
Earlier, on Feb 29, 2024, IBIT posted $612 million in a single day, followed by another $604 million the next day — underscoring how closely its flows tracked Bitcoin’s bullish sentiment.
etfstream.com
Net Flows and Investor Sentiment
IBIT maintained positive monthly net inflows through 2024 and 2025.
During the ETF’s first three days, spot Bitcoin ETFs collectively saw $1.9 billion in inflows, with 56% going to IBIT.
reuters.com
Even when Bitcoin temporarily cooled, investors used price dips as entry points — a sign that IBIT had become the preferred institutional gateway to Bitcoin exposure.
Interestingly, large inflow surges often coincided with short-term local tops in Bitcoin’s price — a reminder of the reflexive behavior between ETF flows and market sentiment.
coindesk.com
📊 Visualization Suggestions
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AUM Timeline Chart:
Plot IBIT’s AUM from Jan 2024 to Oct 2025, marking milestones at $1B, $10B, $50B, and $100B. -
Flows vs. Price Chart:
Overlay monthly IBIT inflows against Bitcoin’s USD price — showing how ETF inflows amplify rallies. -
Market Share Pie Chart:
Display IBIT’s dominance (~60%) within the total U.S. Bitcoin ETF ecosystem.
4. Competitive Landscape: Fidelity, Grayscale, ARK 21Shares, and Others
The SEC’s decision to approve multiple spot Bitcoin ETFs simultaneously created a competitive new market overnight.
While BlackRock’s IBIT quickly became the clear leader, several major rivals emerged — each bringing unique strategies to attract inflows.
Fidelity Wise Origin Bitcoin ETF (FBTC)
Fidelity, a pioneer in crypto adoption, launched its Wise Origin Bitcoin ETF (FBTC) alongside IBIT in January 2024.
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Launch AUM: Trailed closely behind IBIT
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Early 2024 AUM: ~$6.5B (second place)
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Promotional Fee: 0% for first 6 months, later rising to 0.25%
etfstream.com
This aggressive strategy helped FBTC attract a wave of retail and advisory clients early on.
By late 2025, FBTC had crossed the $20B AUM threshold — still well behind IBIT but firmly holding the No. 2 spot.
Grayscale Bitcoin Trust / ETF (GBTC)
Before ETFs were approved, Grayscale Bitcoin Trust (GBTC) dominated institutional Bitcoin exposure, holding over 600,000 BTC — about 3% of total supply.
When converted to an ETF in January 2024, GBTC’s long-standing 1.5% fee became a fatal disadvantage.
Investors rapidly exited to cheaper options like IBIT and FBTC, triggering over $1 billion in outflows in the first week.
reuters.com
By late 2024, GBTC’s holdings had shrunk by two-thirds, with many analysts declaring that IBIT had effectively “inherited its throne.”
thedefiant.io
ARK 21Shares Bitcoin ETF (ARKB)
ARK Invest, led by Cathie Wood, and Swiss-based 21Shares co-launched ARKB, one of the earliest applicants.
Their final approval arrived simultaneously with IBIT in January 2024.
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Expense Ratio: 0.21% (the lowest non-promotional fee in the group)
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AUM (March 2024): ~$2.1B
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Target Market: Tech-savvy investors and active traders
ark-funds.com
While smaller than BlackRock and Fidelity’s offerings, ARKB carved a niche through strong branding and thematic positioning.
However, limited institutional distribution kept its market share modest.
Second-Tier Competitors
Other issuers approved in January 2024 included Invesco Galaxy, VanEck, WisdomTree, and Bitwise.
By March 2024, Bitwise BITB had about $1.5B AUM, while others hovered near $1B each.
etfstream.com
Despite solid branding, most struggled to compete with BlackRock’s scale and distribution power.
By October 2025, IBIT alone represented roughly 60% of all U.S. Bitcoin ETF assets, consolidating the market much like SPDR Gold did two decades earlier.
📊 Visualization Suggestions
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Comparison Table:
ETF AUM (Oct 2025) Fee Daily Volume Rank IBIT (BlackRock) $98.5B 0.25% $3–5B #1 FBTC (Fidelity) ~$20B 0.25% $1B #2 ARKB (ARK 21Shares) ~$5B 0.21% $300M #3 GBTC (Grayscale) ~$3–4B 1.5% — #4 Others (Bitwise, VanEck, etc.) $1–2B 0.3–0.4% — #5+ -
Market Share Pie Chart:
IBIT ~60%, FBTC ~20%, Others ~20%. -
Timeline Chart:
ETF launch dates vs. cumulative inflows — showing IBIT’s exponential lead.
To Be Continued → Part 3 Tomorrow
Next up:
Institutional Adoption & Investor Profile —
We’ll explore how hedge funds, advisors, and retail investors are using IBIT, and why it’s redefining Bitcoin’s place in global portfolios.