The iShares Bitcoin Trust ETF (IBIT) has experienced significant growth in the third quarter, surpassing $23.3 billion in net asset value (NAV) with a 20% quarterly increase. The fund, managed by BlackRock, holds 367,805 BTC worth approximately $21.5 billion, with $1.8 billion in unrealized profit as of September 30. IBIT has only sold 0.28% of its Bitcoin stash for share redemption since its inception, indicating high investor retention. The fund ended the third quarter with 366,448 BTC under management.
The growth in NAV is attributed to a 19.8% increase in outstanding shares, which rose from 539.1 million to 644 million between quarters. Outstanding shares are owned by investors and are available for trading in the secondary market. IBIT’s liabilities amount to nearly $4 million, related to sponsor fees. The ETF has not incurred any expenses since January. BlackRock has realized over $1.6 million in profit by selling BTC to cover sponsor fees and redeeming investors’ shares since the fund’s inception.
IBIT achieved two daily records on November 6, reaching $1 billion in daily trading volume within 20 minutes of the trading session. The ETF closed the day with $4.1 billion in trading volume, its highest since launch. However, IBIT also experienced its largest daily outflow on the same day, with $69.1 million leaving the fund. Bloomberg senior ETF analyst Eric Balchunas noted the significant volume, stating that IBIT had more trading volume than stocks like Berkshire Hathaway, Netflix, or Visa on that day. The US-traded spot Bitcoin ETFs collectively reached a record $6 billion in volume.
Despite the outflows seen on that particular day, recent reports suggest that it is not a cause for concern given the significant inflows seen the previous week. Overall, IBIT’s performance and trading activity indicate strong investor interest and confidence in the fund. The growth in assets under management and trading volume reflect the increasing popularity of Bitcoin ETFs among investors seeking exposure to the cryptocurrency market through regulated investment vehicles like IBIT managed by BlackRock.
