BlackRock's Bitcoin ETF Gains Momentum with 95% Inflow, Challenges Industry Leaders
Summary:
BlackRock's iShares Bitcoin Trust (IBIT) ETF dominated inflows into U.S. spot Bitcoin ETFs on Tuesday, accounting for 95% of all inflows and accumulating over $300 million. With this, the fund reversed previous weeks' stagnant growth and the new inflow was more than that of the past 21 trading days combined. This has brought BlackRock's total inflow since launch to $16 billion and places it near industry leader Grayscale. Cryptocurrency activity has been influenced this week by the possibility of the Securities and Exchange Commission approving spot Ethereum ETFs in the U.S.
On Tuesday, BlackRock's Bitcoin (BTC) exchange-traded fund (ETF), named iShares Bitcoin Trust (IBIT), dominated the U.S. market by capturing 95% of all inflow into spot Bitcoin ETFs. It took in upwards of $300 million. This was gleaned from initial data procured by Farside Investors, which showed that BlackRock’s IBIT had an impressive inflow of $290 million on May 21, a figure that beat the performance of a total of eleven other ETF issuers combined ($305.7 million). Since the 5th of April, BlackRock’s ETF has seen its highest flow, marking a change from the zero or barely there inflow pattern seen over the preceding six weeks. In fact, the amount is higher than the figures from the past 21 trading days combined. In just four trading days, a surplus of $1 billion returned to spot Bitcoin ETFs, brought on by an intermittent Bitcoin rally.
With these recent daily statistics, Farside Investors suggests that BlackRock's ETF has accumulated $16 billion in inflows since its inception. Yet per the product's official website, assets under management total $19 billion. The impressive figures put BlackRock's iShares Bitcoin Trust fund in close competition with sector leader Grayscale, whose GBTC spot ETF reports $20 billion AUM, according to their official website. In contrast, Grayscale's ETF reported a nil intake on May 21, marking it the fifth trading day with zero outflow. However, an inflow of $72.5 billion occurred over the last five days, marking a halt to a persistent trend of outflow seen over the last four months.
But Tuesday wasn't solely about great incoming figures. The VanEck Bitcoin Trust ETF (HODL) witnessed an outflow of $5.9 million, and the Bitwise Bitcoin ETF (BITB) reported a decline of $4.2 million. Yet, the Fidelity Wise Origin Bitcoin Fund (FBTC) saw a moderate inflow of $25.8 million, all other funds stagnated.
Bitcoin ETF uptake has risen due to a 12% surge in BTC rates over the prior week and reaching a six-week peak of $71,600 on May 21. However, the increase was followed by a slump that saw the value drop below $70,000 in early trading on May 22. At that time, the asset's trading rate was $69,444. Furthermore, a potential Securities and Exchange Commission approval of spot Ethereum ETFs in the U.S. market has amplified cryptocurrency activity this week.
Published At
5/22/2024 8:53:05 AM
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