BlackRock’s iShares Bitcoin Trust (IBIT) Reaches $3 Billion in BTC
BlackRock’s spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), has achieved a significant milestone by holding over 70,000 BTC tokens, valued at approximately $3 billion. This achievement comes after accumulating an additional 3,805 BTC in the past 24 hours.
Since its launch on January 11th, BlackRock’s spot Bitcoin ETF has consistently attracted strong net inflows. In fact, there have only been two trading days where it failed to secure at least $100 million in net inflows.
Other Successful Spot Bitcoin ETFs
BlackRock’s IBIT is not the only spot Bitcoin ETF that has seen success recently. Following the SEC’s approval of 11 spot Bitcoin ETF products, other ETFs have also performed well.
Fidelity’s spot Bitcoin ETF (FBTC) has attracted net inflows of nearly $2.5 billion. Additionally, spot Bitcoin ETFs launched by Ark 21Shares, Bitwise, Invesco/Galaxy, VanEck, Valkyrie, Franklin, and WisdomTree have collectively amassed around $2 billion in assets under management (AUM).
Inflows Surpass GBTC Outflows
The conversion of Grayscale’s Bitcoin Trust (GBTC) into a spot ETF resulted in outflows of approximately $6.1 billion. Traders who had purchased GBTC at a discount to its net asset value were able to redeem it at NAV after the conversion. This profit-taking contributed to the significant outflows.
Furthermore, GBTC’s higher fees compared to its competitors may have prompted investors to shift towards newly launched spot Bitcoin ETFs. As a result, GBTC outflows have decreased to around $200 million per day this week, while inflows into other spot Bitcoin ETFs have exceeded outflows, creating additional demand for Bitcoin.
Hot Take: BlackRock’s Spot Bitcoin ETF Reaches Impressive Milestone
BlackRock’s iShares Bitcoin Trust (IBIT) has made waves in the cryptocurrency market by amassing over $3 billion worth of BTC. This achievement highlights the strong demand for spot Bitcoin ETFs and the growing interest of institutional investors in digital assets. With other spot Bitcoin ETFs also experiencing success and inflows surpassing outflows, the market is witnessing a significant shift towards these investment products. As more traditional financial institutions embrace cryptocurrencies, we can expect further growth and adoption in the crypto space.
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