As a seasoned researcher who has witnessed the rise and fall of numerous financial markets, I must admit that the current surge in institutional investment into Bitcoin ETFs is nothing short of astonishing. Having closely followed the crypto market since its inception, I’ve seen my fair share of skepticism, hype, and outright disbelief from traditional finance. Yet, here we are, with BlackRock, Grayscale, ARK Invest, and other heavyweights pouring millions into Bitcoin ETFs.
Bitcoin‘s price has gone beyond the $65,000 threshold, and institutional investors are taking advantage by investing in Bitcoin-linked exchange-traded funds (ETFs). These ETFs are preparing for the expected bullish trend. On Thursday alone, these crypto investment vehicles saw a daily inflow of approximately $470 million, with a substantial portion coming from BlackRock.
As an analyst, I’ve noticed some intriguing trends from the data provided by SoSoValue. Specifically, I’ve seen that BlackRock’s iShares Bitcoin Trust ETF (IBIT) experienced inflows exceeding $309 million on October 17 alone, which bumped up its total assets under management to a staggering $25.79 billion. This week, the IBIT fund has been witnessing steady inflows, accumulating a net inflow of $1.07 billion. Over the same period, trading volume for this fund reached approximately $5.47 billion.
Grayscale’s GBTC Draws Investor Attention
Besides BlackRock, other significant investment firms like Grayscale Investments, ARK Invest, 21Shares, Fidelity Investments, and Franklin Templeton were among those who collectively fueled the $470 million inflow into spot Bitcoin ETFs on Thursday.
As a crypto investor, I’m excited to share that, according to SoSoValue, the ARK 21Shares Bitcoin ETF (ARKB) has raked in over $100 million from institutional investors. This puts it in second place, just behind BlackRock’s IBIT. With a market share of 0.26% for Bitcoin, ARKB has amassed a total of $2.75 billion since its inception. Over the past week alone, ARKB has attracted inflows worth $196.17 million. This growth is quite promising!
On Thursday, the Grayscale’s GBTC fund, which had been performing poorly earlier in the week, experienced a net investment of $45 million, surprisingly active for a day following relatively little activity the previous day. In all, the fund has accumulated around $91.47 million this week.
On a day-to-day basis, Fidelity’s FBTC fund received approximately $11.69 million, while Franklin Templeton’s EZBC fund took in around $3.88 million. The majority of U.S.-listed Bitcoin spot ETFs saw minimal activity, with no significant investments from institutional investors.
Bitcoin ETFs Reach $20 Billion Milestone
On Thursday, there was a $470 million increase that happened at an interesting moment: it marked the first instance where the total inflows of all U.S.-listed Bitcoin ETFs exceeded $20 billion since they began in January. It took these crypto investment products a full 10 months to reach this milestone.
On his Twitter account (previously known as Twitter), Eric Balchunas – senior ETF analyst at Bloomberg – pointed out that surpassing $20 billion is a particularly difficult goal to attain in this asset class. As he mentioned, it took gold longer to reach this milestone.
As a crypto investor, I’m thrilled to share that we’ve hit a significant milestone with Bitcoin ETFs. For the first time ever, we’ve surpassed $20 billion in total net flows – a metric that’s hard to grow in the ETF world. To put this into perspective, it took gold ETFs approximately 5 years to reach the same figure. Now, our total assets stand at an impressive $65 billion, another all-time high. It’s exciting to be part of such a dynamic and rapidly growing sector!
— Eric Balchunas (@EricBalchunas) October 17, 2024
Simultaneously, Bitcoin spot ETFs are experiencing strong demand, whereas Ethereum ETFs have been struggling to capture investor attention. However, this pattern changed on Thursday, as Ethereum ETFs reported significant inflows for the first time in a while.
On October 17th, it was reported that a total of $48 million was invested in Ethereum ETFs, with BlackRock’s ETHA receiving the largest share at approximately $23.56 million. Fidelity’s FETH came in second place, attracting institutional investors who invested around $31.12 million in the product.
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2024-10-18 12:36