BlackRock’s iShares Bitcoin Trust exchange-traded fund has achieved higher returns compared to Vanguard’s widely held S&P 500 fund since launching in 2024.
Bloomberg figures emphasized by senior ETF analyst Eric Balchunas reveal that the cumulative percentage gain for BlackRock’s fund has edged just past Vanguard’s over the same timeframe.
Since its launch in January 2024, BlackRock’s bitcoin ETF has climbed 71%, whereas Vanguard’s S&P 500 ETF has gained 66% on a total-return basis.
Trading for the iShares Bitcoin Trust, known as IBIT, commenced in 2024 following the Securities and Exchange Commission’s approval of 11 spot bitcoin ETFs after ten years of rejections.
“IBIT’s path to 70% looks like the El Toro roller coaster at Great Adventure (I needed two Advil last time I rode that thing) while $VOO was a walk in the park in comparison,” Balchunas noted on Tuesday.
U.S. investors currently have various options managed by firms like Fidelity, Grayscale, and Morgan Stanley to purchase shares tracking bitcoin’s price. Nevertheless, BlackRock’s offering stands out as the most prominent, holding $61.4 billion in assets per its website.
In contrast, the Fidelity Wise Origin Bitcoin Fund, which ranks as the second-largest bitcoin ETF, holds close to $11 billion.
BlackRock, overseeing more than $15 trillion in assets, caused a major stir within the cryptocurrency industry when it submitted an application for a spot bitcoin ETF in 2023. The fund now provides mainstream investors with a way to gain exposure to bitcoin, while also recording heavier daily trading volume than competing ETFs.
A renewed influx of capital into ETFs during August has additionally supported bitcoin’s valuation. Between August 17 and 27, investors poured more than $2.8 billion into these funds, marking the highest volume since October, when the cryptocurrency reached a new peak.
Bitcoin peaked at $81,281 last week prior to experiencing a decline on Friday.
The leading cryptocurrency was recently priced at $77,539, reflecting a decrease of nearly 1% over a 24-hour window.
Bitcoin kicked off an exceptional rally two weeks ago—marking its strongest performance in three years—and has advanced by nearly 30% over the past month.
Frequently Asked Questions
Which ETF has higher returns since 2024?
BlackRock’s iShares Bitcoin Trust (IBIT) has outperformed Vanguard’s S&P 500 ETF slightly since their 2024 launches.
How much has BlackRock’s bitcoin ETF gained?
It is up 71% since its debut in January 2024.
How much assets does BlackRock’s IBIT manage?
The fund currently manages $61.4 billion in assets.
What is the second biggest bitcoin ETF?
The Fidelity Wise Origin Bitcoin Fund is the second largest, managing nearly $11 billion.
