BlackRock’s Bitcoin ETF Remains One of the Top-Performing Funds in Its Category

These issuers behave like institutional whales, quickly absorbing retail-driven sell-offs that would otherwise trigger sharp market drops.

BlackRock’s Bitcoin ETF remains one of the top-performing funds in its category, even amid the current wave of tariff-related economic uncertainty.

According to Calcbench data, the iShares Bitcoin Trust (NYSE:IBTC) ETF has seen an incredible year-to-date return of 116.6%. For context, the S&P 500 index has risen by 18.8% so far in 2024.

These stellar returns, which come despite recent market volatility and pessimistic economic forecasts, highlight the strong demand for crypto products among institutional investors.

These issuers are also helping reduce Bitcoin’s price volatility, which could make BTC more stable in the long run.

Highlighting this new stability, Bright Space Ventures analyst Darren Yaw stated that these large issuers are quickly mopping up retail-driven sell-offs which would otherwise trigger sharp market drops.

"The interesting tidbit is that U.S.-based ETF issuers have been purchasing an astounding amount of Bitcoin in recent months," Yaw explained.

"In December, their collective stash reportedly surpassed the estimated holdings of Satoshi Nakamoto. Moreover, in January alone, their purchases were nearly twenty times greater than the total global BTC mining output."

This new level of stability depends heavily on the ongoing participation of these large players, who themselves are exposed to broader global economic events.

Bitcoin Remains Surprisingly Strong Despite Trump's Tariffs

The former president's administration is reportedly planning to impose tariffs on nearly all goods from China, sparking fears of a global trade war that could devastate the global economy.

However, despite this uncertainty, Bitcoin has maintained a relatively performance. While its price has dropped from its all-time high in January, it still trades well above pre-election levels.

This unexpected resilience has sparked debate among analysts about what is driving this price floor.

According to analyst Eric Balchunas, this stability can be partly explained by the growing influence of Bitcoin ETFs.

"Bitcoin ETFs have continued to see inflows both over the past month and year-to-date. IBIT alone has clocked in at $2.4 billion in 2024, placing it in the top 1% of ETFs (out of 2,400+). That kind of investor base helps explain why BTC has remained so stable. These ETF holders are far stronger hands than most assume, and that has long-term implications for volatility and price correlation."