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Bitcoin ETF Inflows Surge, BlackRock’s IBIT Leads the Charge

On March 11, 2024, the Bitcoin Exchange-Traded Fund (ETF) market witnessed a remarkable surge in inflows, signaling a renewed investor interest in digital assets. According to data provided by Bitmex Research, the net gain amounted to a staggering $505.5 million on that day alone.

Leading the charge in this bullish trend was BlackRock’s iShares Bitcoin ETF (IBIT), which recorded inflows totaling $562.9 million. This influx of capital translated to a 0.12% increase in IBIT’s total assets, underlining the growing confidence of investors in Bitcoin-backed investment vehicles.

Fidelity’s FBTC fund also contributed significantly to the positive momentum, attracting $215.5 million in new investments. This further solidified the position of established financial institutions in the cryptocurrency space.

Notably, several other Newborn Nine ETFs also experienced notable inflows. Bitwise’s BITB fund saw an influx of $49.8 million, while ARK Invest’s ARKB fund recorded $13.0 million in new investments. VanEck’s BRRR fund, which announced a fee waiver until 2025, witnessed a remarkable surge, attracting $118.8 million in inflows. This marked a significant milestone for VanEck, as its daily inflows surpassed previous records by a considerable margin.

Source: BitMEX

However, amidst the overall positive trend, not all Newborn Nine funds experienced gains. Invesco’s BTCO ETF reported an outflow of $9.7 million, indicating a divergence in investor sentiment within the cryptocurrency ETF market.

Source: BitMEX

Meanwhile, Grayscale, a prominent player in the digital asset investment space, continued to experience outflows, with $494 million exiting the fund on March 11. This marked the highest level of outflows since February 29, reflecting a shifting investor preference towards ETFs over traditional investment vehicles like the Grayscale Bitcoin Trust.

Despite the significant outflows from Grayscale, the inflows into Newborn Nine ETFs significantly outweighed the former for the sixth consecutive day. This trend underscores a growing preference among investors for ETFs as a more accessible and regulated means of gaining exposure to cryptocurrencies.

In terms of Bitcoin holdings, the net inflow amounted to 7,009 BTC on March 11. BlackRock’s IBIT fund accounted for the lion’s share of this inflow, with 7,805 BTC added to its holdings. Fidelity’s FBTC fund added 2,988 BTC, while Bitwise’s BITB fund saw an influx of 690 BTC. ARK Invest’s ARKB fund and VanEck’s BRRR fund gained 180 BTC and 1,648 BTC, respectively.

Overall, the surge in Bitcoin ETF inflows on March 11 reflects a growing institutional appetite for digital assets, with established financial players leading the charge towards mainstream adoption. As regulatory frameworks continue to evolve and investor confidence in cryptocurrencies strengthens, the ETF market is poised for further growth and innovation in the coming months.

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