BlackRock IBIT Tops Bitcoin ETFs with $137 Million More Inflow, Reaching $3.2 Billion Total
The demand for Bitcoin exchange-traded funds (ETFs) is on the rise, as net inflows into the sector have increased for the seventh consecutive day, according to BitMEX Research. The data shows that investors are flocking to Bitcoin ETFs, especially BlackRock IBIT, which has added $137 million to its net inflow, bringing its total to a whopping $3.2 billion.
Bitcoin ETFs are investment vehicles that track the price of Bitcoin and allow investors to gain exposure to the cryptocurrency without having to buy or store it directly. They are seen as a more convenient and regulated way to access the Bitcoin market, especially for institutional and retail investors who may not have the technical expertise or appetite for risk involved in dealing with Bitcoin directly.
The U.S. Securities and Exchange Commission (SEC) approved the first spot Bitcoin ETF in October 2021, opening the floodgates for more Bitcoin ETFs to launch in the following months. Currently, there are ten Bitcoin ETFs trading in the U.S., with nine of them being launched after the SEC’s approval.
Bitcoin ETF Flow – Up to 5th Feb
Net inflow of $68m. Good day for Blackrock. Slow day for most other providers pic.twitter.com/MZyXn3Q4ju
— BitMEX Research (@BitMEXResearch) February 6, 2024
However, not all Bitcoin ETFs are performing equally well. BitMEX Research’s data reveals that seven of the ten ETFs recorded zero inflows for the day as of press time, the only date where more than four ETFs have not reported inflows. This suggests that investors are becoming more selective and discerning in choosing which Bitcoin ETFs to invest in.
The only Bitcoin ETF that has reported outflows on any day since the SEC’s approval is Grayscale Bitcoin Trust (GBTC), which is the oldest and largest Bitcoin ETF in the market. GBTC has seen its net outflows decrease to $108 million, the lowest since the first day of trading, but still pushing the total net outflows past $6 billion. GBTC is facing stiff competition from the newer Bitcoin ETFs, which offer lower fees and better tracking of the Bitcoin price.
Since the inception of the Bitcoin ETFs, the sector has seen $1.5 billion of net inflows, which translates to a BTC equivalent of approximately 33,611 BTC. This data reflects positive momentum toward Bitcoin ETFs, as more investors are embracing them as a viable way to participate in the Bitcoin market. BlackRock IBIT is leading the pack, with its net inflow accounting for more than half of the sector’s total. As the Bitcoin ETF industry matures and evolves, it will be interesting to see how the different ETFs perform and compete with each other.
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