Bitcoin Spot ETFs Secure Nearly $1B in Weekly Inflows with BlackRock Dominating

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of trends come and go. However, the recent surge in institutional investment in US-listed Bitcoin spot ETFs is undeniably one of the most intriguing developments I’ve witnessed.

Last week saw record institutional investment in U.S.-listed Bitcoin spot ETFs, as approximately $1 billion was funneled into these funds. Notably, a significant portion of this investment came from BlackRock’s iShares Bitcoin Trust (IBIT), which accounted for the majority of the investments.

For the past three weeks now, I’ve been witnessing a continuous stream of positive investments flowing into the cryptocurrency products that debuted on the market in January, after receiving the green light from the U.S. Securities and Exchange Commission (SEC).

Institutional Confidence in Crypto ETFs Bolstered by BlackRock

Over the past month, Bitcoin spot ETFs have attracted more than $3 billion in investments, demonstrating that Bitcoin is an increasingly popular investment choice among institutional investors. This increased interest comes as regulators in traditional finance continue to approve more cryptocurrency-related products.

Over the past week, I’ve witnessed an impressive surge in my crypto portfolio due to the combined inflow of approximately $997.7 million into the Bitcoin market from no less than eleven approved ETFs. Interestingly, the majority of these investments took place on Friday, October 25, a day that saw a record-breaking daily contribution of around $402.08 million added to these products.

On that very day, BlackRock’s IBIT amassed over half of the overall investment, bringing in a daily income of $291.96 million. The impressive performance on Friday boosted the company’s total inflows to an astounding $23.99 billion. In the end, the fund accumulated more than $1 billion in weekly inflow.

Last week, other Bitcoin ETFs like Fidelity’s FBTC experienced notable growth, drawing over $71 million in new investments. At present, the total net inflow for this particular product has reached a staggering $10.38 billion, as per data from SoSoValue.

Furthermore, funds like ARK & 21Shares’ ARKB, Bitwise’s BITB, Grayscale’s GBTC, and VanEck’s HODL also boosted the inflows last week. This suggests that the interest in these cryptocurrencies is widespread among various service providers.

Ethereum Spot ETFs Face Continued Outflows

Despite an increase in investments towards Bitcoin spot ETFs, the trend hasn’t been as positive for Ethereum-focused products. Last week, in fact, Ethereum spot ETFs saw withdrawals amounting to $24.45 million, marking their 11th consecutive week of losses. Data from SoSoValue shows that the total assets under management for Ethereum ETFs currently stand at around $6.82 billion, which is significantly lower than Bitcoin’s $65.25 billion, representing about 4.93% of Bitcoin’s market share.

According to a recent study by Kaiko Research, the ongoing withdrawal of funds from Ethereum ETFs since their debut can be largely attributed to a lack of interest among institutional investors.

The research highlights that while Bitcoin CME futures open interest has reached consecutive all-time highs, indicating strong institutional interest, Ether futures open interest on the CME has remained notably low at just 7,300 contracts, valued at approximately $970 million.

The firm’s analysis indicates that the difference in market maturity between Ethereum and Bitcoin suggests a lower level of engagement from institutional investors with ETH compared to their involvement with BTC. Here are the relevant details for both:

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2024-10-28 15:09