BlackRock's iShares Bitcoin Trust ETF (IBIT) faces challenges despite success since its launch. Analyst Eric Balchunas highlights risks linked to Bitcoin's stock market correlation, which could limit ETF adoption. Despite its initial performance, recent outflows indicate rising caution.
Institutional interest in IBIT remains high, with significant investments, including from Mubadala Sovereign Wealth Fund. Yet, growing economic concerns and slowed momentum in 2025 pose challenges. Balchunas notes the need for higher adoption and a decoupling from traditional stocks to drive growth.