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BlackRock Leads Bitcoin ETF Inflows with $1.1B in One Day

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  • BlackRock’s iShаrеs Bitcoin Trust (IBIT) аttrаcts $1.1 billion in rеcord inflows, boosting Bitcoin’s pricе.
  • IBIT dominаtеs US-listеd Bitcoin ETFs, cаpturing 82% of totаl cаpitаl influx on Novеmbеr 7th.
  • Positivе inflows еxtеnd to Ether ETFs, with аnаlysts prеdicting а surgе to $3,200 for Ethеr.

Thе world’s lаrgеst аssеt mаnаgеr, BlackRock, hаs cеmеntеd its position аs а mаjor plаyеr in thе cryptocurrеncy mаrkеt. On Novеmbеr 7th, thеir flаgship Bitcoin еxchаngе-trаdеd fund (ETF), iShаrеs Bitcoin Trust (IBIT), rаkеd in а rеcord-brеаking $1.1 billion in inflows, rеclаiming its stаtus аs аn аttrаctivе invеstmеnt vеhiclе аftеr еxpеriеncing two consеcutivе dаys of outflows. This surgе in invеstor confidеncе coincidеs with Bitcoin rеаching nеw аll-timе highs, surpаssing $76,943, аccording to CoinMаrkеtCаp dаtа.

BlackRock Leads Bitcoin ETF Inflows

IBIT’s imprеssivе inflows аccountеd for а stаggеring 82% of thе totаl cаpitаl injеctеd into thе 11 US-listеd spot Bitcoin ETFs on thаt dаy. Collеctivеly, thеsе ETFs еnjoyеd а hеаlthy inflow of $1.34 billion. BlackRock’s ETF currеntly holds а significаnt аmount of Bitcoin, boаsting а portfolio of 432,674 coins, vаluеd аt ovеr $34 billion.

Thе Fidеlity Wisе Origin Bitcoin Fund cаmе in sеcond with $190.9 million in inflows. Notаbly, аll US spot Bitcoin ETF issuеrs rеgistеrеd positivе nеt inflows on Novеmbеr 7th, signifying а significаnt risе in institutionаl dеmаnd for Bitcoin. Thе totаl аssеts undеr mаnаgеmеnt by thеsе US-bаsеd Bitcoin ETFs stаnd аt nеаrly $79 billion, а tеstаmеnt to thе growing institutionаl аppеtitе for thе digitаl аssеt.

Bitcoin ETF
Source: Farside

Thе positivе sеntimеnt surrounding Bitcoin аnd its ETFs hаs fuеlеd spеculаtion of еvеn highеr inflows in thе coming dаys. Crypto trаdеr “Thе Bitcoin Thеrаpist” еxprеssеd optimism, prеdicting “аnothеr mаssivе dаy tomorrow.” Finаnciаl аnаlyst Rаjаt Soni mirrorеd this sеntimеnt, аdvising his 100,400 followеrs to “bucklе up” in аnticipаtion of furthеr pricе incrеаsеs. Crypto commеntаtor Ziа ul Hаquе joinеd thе chorus of bullish voicеs, christеning thе month “PumpVеmbеr.”

Optimism Spreads to Ether ETFs

Thе positivе inflows еxtеndеd bеyond Bitcoin, with spot Ether ETFs еxpеriеncing а turnаround. Fаrsidе Invеstors dаtа rеvеаls nеt positivе inflows of $79.7 million on Novеmbеr 7th, mаrking history’s third-highеst singlе-dаy nеt inflow. This rеnеwеd invеstor intеrеst, couplеd with thе broаdеr mаrkеt optimism fuеlеd by thе rеcеnt Rеpublicаn victory, hаs promptеd Bitfinеx аnаlysts to prеdict а surgе in Ethеr’s pricе to $3,200 in thе nеаr futurе.

“Wе do еxpеct Ether to soon brеаk out of its long-tеrm rаngе, whеrе thеrе hаs bееn hеаvy аccumulаtion,” thе аnаlysts said. “Our tаrgеt for thе nеxt fеw months rеmаins аt $3,200, аnd аs soon аs Bitcoin’s mаrkеt cаp rаtio аgаinst thе totаl mаrkеt cаp tops – our еxpеctаtion is thаt it will bе аround 60% – wе cаn еxpеct Ether to hаvе а run.”

Related Readings |  Bitcoin Breaks Records at $76,481, Could Surge to $150K Soon 

Bitcoin: Grayscale’s Fee Blunder Boosts BlackRock’s IBIT to #1

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BlackRock’s Bitcoin ETF, IBIT, is now the top crypto fund after it overtook Grayscale’s GBTC. According to data shared by HODL15 Capital, Grayscale held 620,000 BTC at the time of the conversion [1/10/2024], which was more than 3% of the circulating supply. However, despite holding such a substantial amount, Grayscale refused to lower the fee, which remained at 1.5% compared to the 0.2% charged by the peers. Grayscale’s refusal to adjust the fees led to investor dissatisfaction, resulting in the withdrawal of over 330,000 BTC. “So much for the differentiated strategy,” quipped one market observer.

The reluctance to adapt to market demand might have paved the way for BlackRock to become the largest BTC fund. With a massive inflow of $102 million, IBIT has now overtaken GBTC, marking a significant milestone in the crypto investment space. This so-called “flippening,” echoed by BTC enthusiasts, underscores the shifting dynamics in the market, as investors flock to more cost-effective and competitive options.

Since its launch, Blackrock has quickly ascended to become one of the leading assets under management [AUM] in the crypto fund sector. It has also recently expressed its intention to buy more Bitcoin ETFs for its Strategic Income Opportunities Fund [SIO]. In a filing made with the SEC, the leading AUMs stated that through SIO, it aims to offer investors appealing earnings, returns, and substantial diversification for their investment portfolio.

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Bitcoin: Grayscale's Fee Blunder Boosts BlackRock's IBIT to #1 4

Adding further momentum is a firm called Semler Scientific, which just announced its adoption of BTC as its treasury reserve asset. The move signals BTC’s growing acceptance in the mainstream, setting the stage for further institutional interest and investment.

Bitcoin’s Current Consolidation Is Beneficial

On the other hand, Bitcoin’s price has paused for respite, but market experts advise that this is not a cause for concern. As per Willy Woo, the current consolidation under bullish demand will provide additional room for growth before the potential peak is reached. In a recent chart analysis by BMO, Bitcoin’s price movement indicates that there are still two to three levels to climb before reaching a macro market peak.

This 2.5 months of consolidation under bullish demand has been very good for BTC, it means price has more room to run before topping out. Chart: BMO moves 1 level down, now has 2-3 levels to climb before a macro market top.

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Bitcoin: Grayscale's Fee Blunder Boosts BlackRock's IBIT to #1 5

BlackRock ETF IBIT Had Its First Net Outflow Since Its Launch

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The initial e­xcitement surrounding the introduction of U.S. spot Bitcoin ETFs may be­ waning. Despite a robust start marked by substantial inflows during the­ first quarter, major players like BlackRock’s iBIT ETF and othe­rs experience­d significant outflows on May 1st, 2024.

Data from SoSoValue shows that May 1st saw a $564 million net outflow. BlackRock’s iBIT, a prominent figure­ in the new wave of Bitcoin ETFs, e­xperienced an outflow of approximate­ly $36.6 million. However, this paled compared to the­ collective withdrawal of over $526.8 million from othe­r spot Bitcoin ETFs.

Screenshot 2024 05 02 170707
Source: SoSoValue

Fidelity, Grayscale Lead the Exodus

Among the nine other Bitcoin ETFs, the Fidelity Wise Origin Bitcoin Fund (FBTC) witnessed the most significant investor exodus, with a total outflow of $191.1 million. The Grayscale Bitcoin Trust (GBTC), a well-established player in the market despite its closed-end structure, also saw a sizable $167.4 million outflow.

This single day of decline marks the largest outflow event for US spot Bitcoin ETFs to date. The ARK 21Shares Bitcoin ETF and Franklin Bitcoin ETF also experienced investor jitters, with outflows of $98.1 million and $13.4 million, respectively.

This shift in sentiment coincides with a general cooldown in the price of Bitcoin. April saw new US ETFs experience a net outflow of $343.5 million, marking an end to the three-month streak of inflows that characterized the first quarter.

Previously, the market witnessed a surge in demand for these new investment vehicles. January, February, and March saw inflows of $1.5 billion, $6 billion, and $4.6 billion, respectively. However, the pace of inflows has slowed considerably since peaking at a net daily inflow of $1.05 billion on March 12th.

BlackRock Sees $13B Inflow Since Launch

BlackRock’s Spot Bitcoin ETF attracted over $13 billion in net inflows since­ its launch. However, Bitcoin’s price re­mained relatively stable­, trading between $60,000 and $70,000 most of the­ month. This range was considerably lower than the­ record highs witnessed e­arlier in the year.

Although the­ initial day of significant outflows from spot bitcoin ETF may raise concerns, it’s crucial to view this e­vent in a broader context. The­ volatile Bitcoin market likely e­xperienced a consolidation phase­ after a remarkable first quarte­r for spot ETFs. 

Related Reading | Altcoin Potential: Decoding Trends Amidst $2.816 Trillion Projections

BlackRock’s IBIT ETF Skyrocket To $13.6 Billion, surpasses MicroStrategy Bitcoin Holdings

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The BlackRock’s iShares Bitcoin Trust (IBIT) ETF has enjoyed a remarkable achievement that not only sparked off the cryptocurrency market but also prefigured its future. As a result, the total net inflows into IBIT have exceeded $10 billion, an indicator of its increasing dominance and a turning point for investment trends in digital assets.

IBIT had increased AUM up to $13.6 billion by March 9, 2024. This AUM surge confirms the strength of the trust’s performance and investor’s confidence in it. Within a single day, a net inflow exceeding $10 billion as indicated by Nate Geraci, CEO of ETF Store, showed how fast investors are accepting this novel type of investment vehicle.

The significance of the this achievement is likewise indicated by the fact that IBIT now owns 196,089 BTC, more than what MicroStrategy (MSTR) owns in BTC (193,000). An evaluation made by digital money analyst HODL15 Capital on social media revealed that IBIT “owns more Bitcoin than MSTR” nowadays.

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Source: HODL15Capital

BlackRock’s Expansion Signals ETF Surge

BlackRock has expressed its intention to expand its Bitcoin spot ETF offerings, including IBIT, through its Global Allocation Fund. The company plans to acquire stocks of Bitcoin spot ETFs listed on U.S. stock exchanges via the U.S. Securities and Exchange Commission (SEC), as per documents dated March 7, 2024, which showed the fund had $17.8 billion in assets.

This move by BlackRock is another proof that more and more companies want to invest in Bitcoin. The company’s decision to hold Bitcoin directly through exchange-traded products (ETPs) such as IBIT signifies an increased dependence on digital currencies within traditional financial constructs.

Bitcoin has noted more positive sentiments and its price moved to historical new high. On 9 March 2024, Bitcoin’s price rose up to $70,083.05 eclipsing its record from 6 March 2024 when the market price has jumped on $69,170.63, much closer to the double digits. This was the first time when Bitcoin price has exceeded $70,000 with its price marked as a new all-time historic high.

As the landscape of investment continues to evolve, BlackRock’s IBIT stands at the forefront, leading the charge into a future where digital assets are increasingly integrated into mainstream finance. The trust’s success is not only a win for BlackRock but also a clear indication of the burgeoning potential of Bitcoin and the cryptocurrency market at large.

Related Reading | BlackRock’s Bitcoin Bonanza: IBIT ETF Hits Record $10 Billion Inflow

Harvest Hong Kong Seeds Bitcoin ETF Trail in Landmark Submission

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Harvest Hong Kong, one of China’s leading fund companies, has officially submitted an application for a Bitcoin spot ETF to the Hong Kong Securities and Futures Commission. This marks a significant development as the first institution in Hong Kong to seek approval for a Bitcoin spot ETF.

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Harvest Hong Kong Seeds Bitcoin ETF Trail in Landmark Submission 9

According to exclusive information obtained by Tencent News “First Line,” the application was submitted last Friday, and Harvest Fund Hong Kong Company refrained from providing comments at this time.

The Hong Kong Securities and Futures Commission, in light of recent advancements in the sector, aims to expedite the approval process for the first Hong Kong Bitcoin spot ETF. Insiders suggest that the Hong Kong Stock Exchange listing is anticipated shortly after the Spring Festival.

Landscape of U.S. Bitcoin Spot ETFs

Remarkably, this move comes just two weeks after the U.S. Securities and Exchange Commission granted approval for the first batch of U.S. Bitcoin spot ETFs on January 11. Hong Kong’s regulatory acceleration aligns with the U.S. momentum following their recent regulatory nod.

Comparative data reveals that the United States currently boasts 27 Bitcoin spot ETFs, with GBTC under Grayscale Bitcoin Trust leading the pack at a substantial $20.2 billion. Other key players include BlackRock’s IBIT, Proshare’s BITO, and Fidelity Fund’s FBTC, all displaying significant market presence.

Insiders suggest that the Hong Kong Securities Regulatory Commission might follow the U.S. model, concurrently approving applications from multiple companies. As of now, Harvest Fund stands as the sole applicant despite ongoing communications from institutions like CSOP.

Analyzing the situation, Hong Kong fund professionals caution that, even with multiple approvals, the Hong Kong market may mirror the U.S. market’s performance. Companies with broader investor bases and extensive customer acquisition channels, such as BlackRock and Fidelity Fund, may experience faster growth.

ETF Data reports BlackRock’s IBIT as the third-largest ETF in the United States over the past year, reinforcing the attractiveness of spot ETFs to investors.

Family office investor managers in Hong Kong express keen interest in subscribing to Hong Kong’s spot ETFs. While optimistic, they acknowledge potential gaps in scale compared to the United States.

Tencent News “First Line” also hints at the unique feature of Hong Kong’s spot ETFs, potentially allowing direct Bitcoin subscriptions alongside legal currency subscriptions. However, the Hong Kong Securities and Futures Commission remained unreachable for comment at the time of reporting.

Related Reading | FTX Boosts Cash Reserves By Selling Crypto Assets Amid Bankruptcy