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Bitcoin ETF Inflows Approach $1 Billion This Week, BlackRock’s IBIT Dominates
Inflows into spot Bitcoin ETF have reached closer to $1 billion in the first four trading days this week, with BlackRock iShares Bitcoin Trust (IBIT) dominating most of the flows. This shows a strong pick-up in BTC institutional interest, despite the BTC price being on a falling trajectory this week. Amid continuous inflows, the AUM for IBIT has now crossed $73 billion.
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BlackRock Dominates Bitcoin ETF Inflows
After last week’s outflows, spot ETFs for Bitcoin in the US have seen net inflows so far this week, clocking $970 million in net positive flows, reported blockchain analytics platform Santiment. On Thursday, BlackRock’s IBIT managed to scoop an additional 2,681 BTC worth $288 million while clocking a strong $2.2 billion in daily trading volume.
Source: SantimentEarlier this week, BlackRock’s IBIT reached $70 billion in assets under management (AUM), which has now surged to $73 billion, despite the falling BTC price. Out of the $970 million inflows across all US issuers, IBIT alone has contributed to more than $900 million, as per data from Farside Investors.
As of now, IBIT holds a total of 666,842 BTC, while the IBIT share price has been consolidating above $60 levels. Since its inception, IBIT has already given more than 150% returns to investors. Apart from IBIT, other Bitcoin ETF issuers witnessed negative flows. For e.g. Fidelity’s FBTC saw $197 million outflows on Thursday, while Ark Invest’s ARK saw $10.7 million in outflows.
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Overtaking Gold ETFs
The BlackRock ETF IBIT is already challenging the once dominant market players, challenging Gold ETFs, and other S&P 500 ETFs, which have been on the top list for years.
During his recent talk, Blommberg’s Senior ETF strategist Eric Balchunas projected a dramatic surge in Bitcoin ETF assets under management (AUM), forecasting they will eventually triple the size of gold ETFs and exceed $1 trillion.
The analyst noted a shift in market focus, stating, “No one is talking about gold,” as Bitcoin continues to gain traction as a preferred investment vehicle. However, amid geopolitical uncertainties, the Bitcoin price has now come under pressure as crypto market liquidations soared past $1.1 billion earlier today amid Israel’s military strike on Iran earlier today. It will be interesting to see whether these ETF inflows continue during Friday’s trading session.
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