In 2025, investor demand for Bitcoin and cryptocurrency ETFs has surged, with BlackRock's iShares Bitcoin ETF, known as IBIT, achieving a remarkable milestone of over $72 billion in assets under management.

Since its launch, IBIT has attracted over $52 billion in cumulative inflows, significantly outpacing other Bitcoin ETFs, which have stagnated around $20 billion in total inflows since late 2024.

IBIT reached $70 billion in assets under management faster than any other U.S. ETF, achieving this milestone in just 341 trading days.

This growth in Bitcoin ETFs follows the SEC's approval of the first spot Bitcoin ETF in early 2024, which has led to a surge in investor interest and inflows.

In the first quarter of 2025, crypto exchange-traded products saw inflows exceeding $585 million, significantly driven by the popularity of U.S.-approved spot Bitcoin ETFs.

IBIT has become BlackRock’s most profitable ETF, generating $186 million annually in fee revenue, surpassing its flagship S&P 500 ETF by $3 million.

Despite having a lower assets under management, IBIT's high trading activity has allowed it to surpass its S&P 500 counterpart in annual trading fee revenue.

Bitcoin analyst James Check noted that IBIT is dominating new investments, with minimal outflows compared to its competitors, indicating a clear preference from investors.

The evolution of Bitcoin ETFs, particularly IBIT, will be crucial in assessing the long-term impact of institutional investments on the cryptocurrency ecosystem.

IBIT has experienced a notable decrease in volatility, now mirroring the stability of the S&P 500, raising concerns about how institutional inflows might alter Bitcoin's traditional price dynamics.

Historically known for high volatility, Bitcoin has maintained a consistent valuation since the launch of spot ETFs, marking an unprecedented stability for the asset.

Institutional investors are increasingly attracted to regulated investment avenues that reduce risks, similar to trends observed with gold ETFs.