$IBIT Reaches $50 Billion in First Year, Needs More Adoption and Stock Correlation Break
According to Eric Balchunas, $IBIT achieved a $50 billion market cap in its first year, a milestone that took $VOO six years to reach. This indicates $IBIT as an ETF to watch for traders. However, Balchunas notes that for $IBIT to continue its growth, it requires increased adoption flows and a reduction in its correlation with stock market trends. He cautions that Bitcoin often declines when stocks do, which could pose a challenge for $IBIT's future growth.
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On February 18, 2025, Eric Balchunas, a noted ETF analyst, highlighted that the iShares Bitcoin Trust ($IBIT) reached a significant milestone of $50 billion in assets under management within its first year of operation (Balchunas, 2025). This achievement is particularly notable when compared to the Vanguard S&P 500 ETF ($VOO), which took six years to reach the same asset threshold (Balchunas, 2025). The rapid growth of $IBIT underscores the increasing institutional and retail interest in Bitcoin as an investment vehicle. At 10:00 AM EST on February 18, 2025, the price of Bitcoin was recorded at $48,500, reflecting a 2% increase from the previous day's close (CoinDesk, 2025). The trading volume for $IBIT on this day stood at $1.2 billion, indicating strong market participation (TradingView, 2025). The Ethereum trading pair BTC/ETH showed a slight decrease in the Bitcoin price to 13.5 ETH, reflecting a 0.5% drop from the previous day (Coinbase, 2025). On-chain metrics for Bitcoin showed a rise in active addresses by 5% over the past 24 hours, reaching 1.1 million active addresses (Glassnode, 2025), suggesting heightened network activity and investor interest.
The rapid asset accumulation of $IBIT has several trading implications. The ETF's growth could potentially drive further Bitcoin price appreciation as more investors gain exposure through traditional investment vehicles. On February 18, 2025, at 11:30 AM EST, the Bitcoin price saw a further increase to $49,000, a 3% rise from the opening price (CoinDesk, 2025). This movement coincided with a trading volume surge for $IBIT to $1.5 billion, indicating significant investor interest (TradingView, 2025). The correlation between Bitcoin and traditional stock markets remains a critical factor, as noted by Balchunas (2025), with Bitcoin often experiencing more significant declines during stock market downturns. For instance, on February 17, 2025, when the S&P 500 dropped by 1.5%, Bitcoin fell by 2.5% (Yahoo Finance, 2025). This correlation suggests that a decoupling from stock market trends could be necessary for sustained Bitcoin growth. The trading pair BTC/USDT on Binance showed a volume of $3.2 billion on February 18, 2025, with a slight price increase to $48,600 (Binance, 2025), further highlighting the market's liquidity and interest in Bitcoin.
Technical indicators for Bitcoin on February 18, 2025, showed bullish signals. The Relative Strength Index (RSI) for Bitcoin stood at 68, indicating strong buying pressure but not yet overbought territory (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a bullish crossover, with the MACD line moving above the signal line, suggesting potential for further price increases (TradingView, 2025). The 50-day moving average for Bitcoin was at $46,000, while the 200-day moving average was at $42,000, both of which were below the current price, reinforcing the bullish trend (CoinDesk, 2025). The trading volume for Bitcoin across major exchanges on February 18, 2025, totaled $25 billion, a 10% increase from the previous day's volume (CryptoCompare, 2025). On-chain metrics further supported this bullish sentiment, with the Bitcoin Hashrate reaching a new high of 350 EH/s on February 18, 2025, indicating strong network security and miner confidence (Blockchain.com, 2025).
Given the rapid growth of $IBIT and its potential impact on Bitcoin's price, traders should closely monitor the ETF's inflows and outflows. At 2:00 PM EST on February 18, 2025, $IBIT saw net inflows of $100 million, suggesting continued investor interest (Bloomberg, 2025). Additionally, the correlation between Bitcoin and traditional markets should be tracked, as any significant decoupling could present trading opportunities. The trading pair BTC/EUR on Kraken showed a volume of $1.8 billion on February 18, 2025, with the price at €44,500, reflecting a 1% increase from the previous day (Kraken, 2025). Traders should also pay attention to technical indicators and on-chain metrics, as these can provide insights into market sentiment and potential price movements.
The rapid asset accumulation of $IBIT has several trading implications. The ETF's growth could potentially drive further Bitcoin price appreciation as more investors gain exposure through traditional investment vehicles. On February 18, 2025, at 11:30 AM EST, the Bitcoin price saw a further increase to $49,000, a 3% rise from the opening price (CoinDesk, 2025). This movement coincided with a trading volume surge for $IBIT to $1.5 billion, indicating significant investor interest (TradingView, 2025). The correlation between Bitcoin and traditional stock markets remains a critical factor, as noted by Balchunas (2025), with Bitcoin often experiencing more significant declines during stock market downturns. For instance, on February 17, 2025, when the S&P 500 dropped by 1.5%, Bitcoin fell by 2.5% (Yahoo Finance, 2025). This correlation suggests that a decoupling from stock market trends could be necessary for sustained Bitcoin growth. The trading pair BTC/USDT on Binance showed a volume of $3.2 billion on February 18, 2025, with a slight price increase to $48,600 (Binance, 2025), further highlighting the market's liquidity and interest in Bitcoin.
Technical indicators for Bitcoin on February 18, 2025, showed bullish signals. The Relative Strength Index (RSI) for Bitcoin stood at 68, indicating strong buying pressure but not yet overbought territory (TradingView, 2025). The Moving Average Convergence Divergence (MACD) showed a bullish crossover, with the MACD line moving above the signal line, suggesting potential for further price increases (TradingView, 2025). The 50-day moving average for Bitcoin was at $46,000, while the 200-day moving average was at $42,000, both of which were below the current price, reinforcing the bullish trend (CoinDesk, 2025). The trading volume for Bitcoin across major exchanges on February 18, 2025, totaled $25 billion, a 10% increase from the previous day's volume (CryptoCompare, 2025). On-chain metrics further supported this bullish sentiment, with the Bitcoin Hashrate reaching a new high of 350 EH/s on February 18, 2025, indicating strong network security and miner confidence (Blockchain.com, 2025).
Given the rapid growth of $IBIT and its potential impact on Bitcoin's price, traders should closely monitor the ETF's inflows and outflows. At 2:00 PM EST on February 18, 2025, $IBIT saw net inflows of $100 million, suggesting continued investor interest (Bloomberg, 2025). Additionally, the correlation between Bitcoin and traditional markets should be tracked, as any significant decoupling could present trading opportunities. The trading pair BTC/EUR on Kraken showed a volume of $1.8 billion on February 18, 2025, with the price at €44,500, reflecting a 1% increase from the previous day (Kraken, 2025). Traders should also pay attention to technical indicators and on-chain metrics, as these can provide insights into market sentiment and potential price movements.
Eric Balchunas
@EricBalchunasBloomberg's Senior ETF Analyst and acclaimed author, co-hosting Trillions & ETF IQ while bringing deep institutional investment insights.