In Just Seven Weeks, BlackRock’s IBIT Bitcoin ETF Reaches $10 Billion in Assets Under Management
In just seven weeks since its launch on January 11, BlackRock’s IBIT spot bitcoin exchange-traded fund (ETF) has reached $10 billion in assets under management (AUM). This milestone was achieved after the fund secured its second-largest daily inflows on Thursday. In terms of bitcoin, the IBIT fund now holds more than 162,000 BTC ($10 billion) in AUM. Fidelity’s FBTC fund has also surpassed 105,000 BTC ($6.3 billion) in assets. To put this into perspective, only about 150 out of 3,400 ETFs have more than $10 billion in AUM.
Other notable bitcoin ETFs include Ark Invest 21 Shares’ ARKB with over 34,000 BTC ($2.1 billion) and the nine newly launched spot bitcoin ETFs (excluding Grayscale’s converted GBTC fund) with a combined total of over 344,000 BTC ($21 billion) in assets. However, Grayscale’s higher fee GBTC fund has experienced a decline in assets from around 619,000 BTC ($38 billion) to just over 432,000 BTC ($27 billion) since the spot bitcoin ETFs began trading.
BlackRock Inflows and Grayscale Outflows Balance Each Other Out
On Thursday, BlackRock’s IBIT registered inflows of $603.9 million, slightly below the record inflows of $612.1 million generated on Wednesday. However, these inflows were partially offset by outflows of $598.9 million from Grayscale’s converted fund — the second-largest outflows to date. Fidelity’s FBTC saw inflows of $44.8 million and Bitwise’s BITB saw inflows of $21.7 million. Additionally, there has been an increase in outflows from Europe’s largest bitcoin exchange-traded products, likely due to investors switching to U.S. ETFs and taking profits.
Overall, the net inflows for all U.S. spot bitcoin ETFs combined amounted to $92.4 million on Thursday, a significant drop from the record net inflows of $673.4 million on Wednesday.
Globally, Bitcoin Investment Vehicles Absorbed 119,604 BTC in February
In February, bitcoin investment vehicles globally absorbed 119,604 BTC ($7.4 billion), according to K33 Research analyst Vetle Lunde. This represents a new monthly high, surpassing the peak flow of Grayscale’s GBTC in December 2020.
Another Big Day for Spot Bitcoin ETF Trading Volume
Trading volume for U.S. spot bitcoin ETFs reached the second-largest level of $4.74 billion on Thursday, following a record volume of $7.64 billion on Wednesday when bitcoin’s price hit a high of $64,000. BlackRock’s IBIT led the trading volume with $1.9 billion, followed by Grayscale’s GBTC with $1.37 billion and Fidelity’s FBTC with $1.01 billion.
Currently, bitcoin is trading at $62,103, experiencing a 0.6% decrease over the past 24 hours. However, it rose nearly 45% in February — the largest monthly percentage gain since December 2020.
Hot Take: BlackRock’s IBIT Bitcoin ETF Continues to Soar
The success of BlackRock’s IBIT spot bitcoin ETF is undeniable as it reaches $10 billion in assets under management in just seven weeks. This milestone demonstrates the growing popularity and demand for bitcoin ETFs among investors. With Fidelity’s FBTC also exceeding $6 billion in assets, it is clear that these investment vehicles are attracting significant attention.
Furthermore, the inflows into BlackRock’s IBIT and other spot bitcoin ETFs have resulted in significant outflows from Grayscale’s GBTC fund. This shift suggests that investors are favoring lower-fee options and are seeking exposure to bitcoin through regulated ETFs.
The trading volume for spot bitcoin ETFs has also been impressive, with record-breaking levels on Wednesday and Thursday. This indicates a high level of market activity and investor interest in bitcoin as its price continues to rise.
Overall, the rapid growth of BlackRock’s IBIT bitcoin ETF and the success of other spot bitcoin ETFs reflect the increasing acceptance and adoption of cryptocurrencies in traditional financial markets. As more investors seek exposure to digital assets, the demand for these investment vehicles is likely to continue to rise.
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