The iShares Bitcoin Trust ETF (NASDAQ: IBIT) has made history as the fastest-growing exchange-traded fund, reaching $40 billion in assets under management (AUM) in just 211 days since its January launch. Billionaire investors, including Israel Englander, Steven Schonfeld, and Paul Tudor Jones, are leading the charge, marking a significant milestone for the institutional adoption of Bitcoin.

  1. Record Growth:
    • iShares Bitcoin Trust ETF reached $40 billion AUM in just 211 days, smashing the previous record of 1,253 days.
    • Demand from institutional investors has driven this unprecedented growth.
  2. Top Billionaire Backers:
    • Israel Englander (Millennium Management): $849 million.
    • Yan Huo (Capula Management): $308 million.
    • Steven Schonfeld (Schonfeld Strategic Advisors): $195 million.
    • Dan Och (Sculptor Capital): $195 million.
    • Paul Tudor Jones (Tudor Investments): $160 million.
  3. Bitcoin ETF Advantages:
    • Offers liquidity, security, and legitimacy.
    • One of the lowest-cost options, with an expense ratio of 0.25%.
  4. Bitcoin’s Potential Upside:
    • Michael Saylor (MicroStrategy): Predicts Bitcoin could reach $13 million by 2045.
    • Cathie Wood (Ark Invest): Projects a target of $3.8 million within five years.
    • Institutional adoption is seen as the primary driver of these ambitious projections.
  5. Institutional Trends:
    • Approximately 60% of funds have at least 1% of assets in Bitcoin.
    • Adoption remains slower among the largest funds, with 40% of funds over $500 billion reporting crypto exposure.

The iShares Bitcoin Trust ETF has become a pivotal player in mainstreaming Bitcoin among institutional investors. While bold predictions from industry leaders like Michael Saylor and Cathie Wood point to enormous growth potential, broader adoption among larger funds remains a key challenge. Regardless, the trend toward crypto acceptance is accelerating, setting the stage for Bitcoin ETFs to outperform the market in the years ahead.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

This story was originally featured on The Motley Fool.