BlackRock’s iShares Bitcoin Trust (IBIT) Sees Strong Demand for Bitcoin ETF
An old-school asset management giant, BlackRock, has made a strong entrance into the bitcoin exchange-traded funds (ETFs) market. The iShares Bitcoin Trust (IBIT), approved last week, has already attracted $1 billion in net inflows within its first week. While trading volume has cooled off slightly after a strong initial day, the fund has accumulated a cumulative volume of over $2 billion. This early demand from clients showcases BlackRock’s commitment to offering access to different assets and delivering quality products for all types of investors.
Grayscale Bitcoin Trust (GBTC) Sees Outflows
The Grayscale Bitcoin Trust (GBTC) is currently the only bitcoin fund with more assets than IBIT, with approximately $29 billion. However, over the past week, GBTC has experienced around $1 billion in net outflows. This was somewhat expected since the fund previously traded at a discount to its net asset value before converting into an ETF. Some shareholders were likely waiting for the conversion to close the gap before making any moves. Additionally, GBTC’s high expense ratio of 1.5% may be working against it, as competitors offer lower fees.
Continued Inflows for Bitcoin ETFs
Despite the outflows from GBTC, spot bitcoin funds have still received hundreds of millions of net inflows. It remains unclear how much of the money leaving GBTC has been redirected towards cheaper funds. Bernstein analyst Gautam Chhugani suggests that cheaper ETFs will continue to absorb GBTC outflows due to their lower fees. Despite this, IBIT continues to stand out with its impressive $900 million net inflows. Following IBIT in terms of assets among new funds are Fidelity Wise Origin (FBTC), Bitwise (BITB), and Ark 21Shares (ARKB) according to FactSet.
Hot Take: BlackRock’s IBIT Dominates Bitcoin ETF Market
BlackRock’s iShares Bitcoin Trust (IBIT) has made a remarkable entrance into the bitcoin exchange-traded funds (ETFs) market. Within its first week, the fund has attracted $1 billion in net inflows, positioning itself as an early winner among the approved spot bitcoin ETFs. While GBTC experiences outflows and struggles with its high expense ratio, IBIT continues to thrive. Its strong demand from clients exemplifies BlackRock’s commitment to providing access to different assets and delivering quality products for investors. As the race for bitcoin ETF dominance continues, IBIT sets a high standard for other funds to follow.
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