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BlackRock Bitcoin ETF Outperforms S&P 500 Fund Since Launch

Created at 1 Sep · 4:41 PM1 source↑ Market-relevant
IN SHORT

BlackRock's iShares Bitcoin Trust (IBIT) has seen a 71% cumulative return since its January 2024 debut, slightly surpassing Vanguard's S&P 500 ETF (VOO) which returned 66%. Despite the strong performance, the path for IBIT has been more volatile than the S&P 500 fund.

Key Numbers

71%IBIT cumulative return since January 2024
66%VOO cumulative return since January 2024
$61.4 billionIBIT assets under management
11Number of spot bitcoin ETFs approved
$2.8 billionETF inflows in late August

Who's Involved

BlackRock
Asset manager whose iShares Bitcoin Trust is outperforming
iShares Bitcoin Trust (IBIT)
BlackRock's spot bitcoin ETF
Vanguard
Asset manager of the S&P 500 ETF
S&P 500 ETF (VOO)
Vanguard's popular S&P 500 tracking fund
Eric Balchunas
Bloomberg senior ETF analyst who highlighted the performance

↳ Why This Matters

The strong performance of BlackRock's Bitcoin ETF highlights the growing interest and potential returns in digital assets for traditional investors, even as it underscores the inherent volatility compared to established equity benchmarks like the S&P 500.

Key facts

  • BlackRock's iShares Bitcoin Trust (IBIT) has returned 71% since its January 2024 launch.
  • Vanguard's S&P 500 ETF (VOO) has returned 66% in the same period.
  • IBIT is the largest spot bitcoin ETF by assets under management, holding $61.4 billion.
  • The SEC approved 11 spot bitcoin ETFs in early 2024.

BlackRock's iShares Bitcoin Trust (IBIT) has delivered a higher cumulative return than Vanguard's S&P 500 ETF (VOO) since their respective launches in January 2024. IBIT has gained 71%, while VOO has returned 66%.

Eric Balchunas, a senior ETF analyst at Bloomberg, noted that while IBIT's performance is slightly ahead, its trajectory has been significantly more volatile, likening it to a roller coaster compared to VOO's smoother path.

Following the SEC's approval of 11 spot bitcoin ETFs in early 2024, BlackRock's product has become the most successful, managing $61.4 billion in assets. Fidelity's Wise Origin Bitcoin Fund is the second largest with nearly $11 billion.

BlackRock's entry into the spot bitcoin ETF market in 2023 was a significant event, providing traditional investors with easier access to bitcoin. Recent investor inflows into ETFs, totaling over $2.8 billion in late August, have also contributed to bitcoin's price appreciation.

Frequently asked questions

IBIT is a spot bitcoin exchange-traded fund launched by BlackRock in January 2024, allowing investors to gain exposure to bitcoin through a traditional brokerage account.

VOO is an exchange-traded fund managed by Vanguard that tracks the S&P 500 index, representing 500 of the largest U.S. publicly traded companies.

The article describes IBIT's price movements as resembling a roller coaster, indicating significant ups and downs, in contrast to the more stable performance of the S&P 500 ETF.

What Happens Next

01Continued monitoring of IBIT's performance against traditional ETFs.
02Tracking investor flows into spot bitcoin ETFs.
CME Headlines
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  • E-mini S&P 500 futures pull back to 7,700 to start week.
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How It Developed

BlackRock's iShares Bitcoin Trust (IBIT) launched in January 2024.
IBIT has achieved a 71% cumulative return since its debut.
Vanguard's S&P 500 ETF (VOO) has returned 66% on a total-return basis in the same period.
IBIT is the most successful among spot bitcoin ETFs, managing $61.4 billion in assets.
Investors have recently increased inflows into ETFs, boosting bitcoin's price.

Sources

T1
BlackRock’s iShares Bitcoin Trust Is Beating Top S&P 500 ETFBitcoin Magazine

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