BlackRock’s Bitcoin ETF Sets Record Inflows, Pushing Bitcoin Above $60,000
BlackRock’s Bitcoin (BTC) ETF has achieved a new daily inflow record, contributing to Bitcoin’s surge above $60,000 for the first time since November 2021. The iShares Bitcoin Trust (IBIT) received an additional $520 million on Tuesday, bringing the total flows of the fund since its launch to over $6.5 billion. As a result of Bitcoin’s rising price during this period, the value of BlackRock’s Bitcoin holdings has appreciated to over $8 billion.
BlackRock Outperforms Competitors
- Fidelity’s Bitcoin ETF currently holds $5.6 billion in BTC but only experienced a smaller inflow of $126 million on Tuesday.
- Grayscale, IBIT’s largest competitor, faced outflows of $125 million.
- Although Grayscale maintains a significant lead in total assets at $25 billion, BlackRock’s ETF is slowly closing the gap due to its lower management fee.
BlackRock Ranks Second in Inflows
Bloomberg ETF analyst Eric Balchunas highlighted that BlackRock’s impressive inflow figure positioned it as the second-highest ETF for inflows in the United States on Tuesday, trailing only behind BlackRock’s iShares Core S&P 500 ETF (IVV). Balchunas also noted that individual trades for IBIT’s ETF surpassed those of both the SPY and QQQ, indicating that many retail investors are trading the ETF despite its reputation as an institutional trading ground.
Bitcoin ETFs Contribute to Price Surge
The price of Bitcoin has surged by over 25% in the past five days, reaching over $63,000 at the time of writing. Many analysts attribute this success to the launch of Bitcoin spot ETFs, which have accumulated over $6.7 billion in flows since their launch on January 11. BlackRock and Fidelity’s Bitcoin funds broke records as the most successful ETF launches in history based on flows within just 30 days. Additionally, BlackRock achieved a new daily trading volume high on Monday, surpassing $1.3 billion and ranking among the top 11 ETFs in the country by volume.
Approaching All-Time High
Bitcoin is now approaching its all-time high of $69,000 USD, although it has already surpassed previous records in certain currency denominations. For example, one BTC is now worth over 95,000 Australian dollars compared to its peak of $87,000 in November 2021.
Hot Take: Bitcoin’s Rise Continues with BlackRock’s ETF Record Inflows
The surge in Bitcoin’s price above $60,000 can be attributed to BlackRock’s Bitcoin ETF setting a new daily inflow record. With over $6.5 billion in total flows since its launch and an appreciation in value to over $8 billion, BlackRock’s ETF is gaining ground against competitors like Fidelity and Grayscale. As Bitcoin approaches its all-time high and spot ETFs continue to attract significant investments, the cryptocurrency market remains bullish. The success of BlackRock’s ETF demonstrates the growing interest from both institutional and retail investors in gaining exposure to Bitcoin through regulated investment vehicles.
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