5 Things You Should Know About IBIT the Most Successful Spot Bitcoin ETP

This January marked a significant milestone at Nasdaq, the first anniversary of BlackRock’s iShares Bitcoin Trust’s (IBIT) listing on Nasdaq. The spot Bitcoin ETP, which launched in January 2024 and allowed market participants to access Bitcoin with convenience and quality. Following approval from regulators in November, Nasdaq in partnership with BlackRock, listed options on the iShares Bitcoin Trust ETF (IBIT).The product traded 353,716 contracts on its opening day, placing it in the top 1% of all options products on the market. 

Since then, IBIT has continued to shatter records and redefine expectations for exchange-traded funds (ETFs), emerging as one of the most successful ETPs in history.

Below are 5 things to know about IBIT:

1. What Makes It the Most Successful ETP of All Time?

IBIT amassed over $50 billion in assets under management in just 288 trading days, a feat no other ETP has achieved in as short a time frame. The iShares Bitcoin Trust ETF was among the first to launch, going to market on the same day as eight other spot Bitcoin ETPs. Throughout 2024, IBIT accounted for 54% of the average daily volume of all other spot Bitcoin ETPs currently available on the market.

“When the industry received regulatory approval of spot bitcoin ETPs last year, it increased access of cryptocurrencies and digital assets more generally for a broad variety of investors, which in turn legitimized the allocation of bitcoin into traditional portfolios,” said Greg Ferrari, Head of Exchange Business Management at Nasdaq. “The work Nasdaq has done together with BlackRock has enabled IBIT to have one of the most successful launches of all time.”

2. It Represents the Convergence of Digital Assets & Traditional Financial Markets

“Being listed on Nasdaq means that the ETP adheres to stringent regulatory standards, providing an added layer of security and transparency for investors” said Alison Doyle, Head of ETP Listings at Nasdaq.

As one of the first Bitcoin ETPs to launch, IBIT addressed obstacles and operational burdens that may have originally prevented asset managers and financial advisors from directly investing in Bitcoin. The ETP structure allows investors to gain exposure to Bitcoin without needing to manage wallets or private keys, simplifying the investment process. It provides a regulated and straightforward vehicle to access Bitcoin in a cost-efficient and convenient manner familiar to market participants.

3. It's Currently one of the Most Traded Options Products on the Market

Nasdaq led the way in advocating for approval of options on Bitcoin ETPs, securing Nasdaq’s path to be the first exchange group to provide options on a spot Bitcoin ETP, preceding all other products by a full day. “IBIT, and now IBIT options, combine the resiliency and liquidity of the Nasdaq markets with the innovation and opportunity of BlackRock’s digital asset ETPs, further integrating digital assets into mainstream finance,” said Kevin Kennedy, EVP of North American Markets at Nasdaq.

On its first day, IBIT’s contract volume made it the fifth most actively traded ETP underlier and the 16th most actively traded options product in the industry.

4. Its Innovative Approach is Paving the Way for Other Digital Assets ETPs

The success of IBIT has set a precedent for innovation in the ETP sector, not only through the introduction of the first options on Bitcoin but also with the inception of other digital asset ETPs such as the iShares Ethereum Trust ETF (ETHA). The launch of ETHA in the spring, which amassed $4 billion in assets under management in its first 6 months, coupled with the success of IBIT, represents a significant milestone for the industry in promoting the adoption of digital assets and providing the investment community with advanced solutions. This broadening of trading opportunities signifies an increasing sophistication in how investors interact with digital assets and the evolving financial product landscape.

5. Looking Ahead

The future of IBIT and the convergence of digital assets and traditional finance appear promising. IBIT has created a new layer of trading opportunities, making it one of the most actively traded contracts in the ETP options market.

"The launch of the IBIT aligns with BlackRock’s commitment to innovation and expanding access to a broad range of asset classes for investors. Its success reflects the value of the ETP wrapper as a means of gaining exposure to bitcoin for various types of investors. We are dedicated to continuing to develop the ecosystem around digital assets and to engaging with and educating clients on this asset class," said Robert Mitchnick, Head of Digital Assets at BlackRock.