BlackRockโs iShares Bitcoin Trust ETF (IBIT) has been dominating the Bitcoin ETF market with an impressive inflow streak since obtaining approval from the US Securities and Exchange Commission (SEC) in January. The ETF market has seen over three months of trading activity, with BlackRock standing out as the frontrunner, showcasing 69 consecutive days of inflows.
BlackRockโs Bitcoin ETF Performance
BlackRockโs IBIT has been attracting significant inflows for 69 straight days, nearing a new record in the ETF market. Analysts highlight the growing interest in BlackRockโs Bitcoin ETF and the overall adoption of Bitcoin, the largest cryptocurrency in the market.
- BlackRockโs iShares Bitcoin Trust ETF has witnessed daily average inflows of $223.4 million in April.
- The ETF experienced a maximum inflow of $849 million and a minimum inflow of $18 million during the month.
- Comparatively, Fidelityโs FBTC ETF, the runner-up, had an average April inflow of $118 million with a maximum of $473 million.
BlackRockโs ETF Milestone
Inching closer to entering the top 10 list, BlackRockโs Bitcoin ETF will tie with the airline JETS ETF with just one more day of inflows, as noted by ETF expert Eric Balchunas. The consistent performance demonstrates the increasing popularity and investor confidence in the ETF.
Challenges Faced by Grayscale
On the other hand, Grayscale Bitcoin Trust (GBTC) has been experiencing significant outflows over the past few months, losing nearly 300,000 Bitcoin. In April, the trust recorded total outflows surpassing $1.6 billion, while BlackRockโs Bitcoin ETF registered notable inflows during the same period.
- GBTC has been taking measures to improve performance and attract inflows to its assets under management (AuM).
Grayscaleโs Introduction of Low-Fee โMini Bitcoin ETFโ
In response to its challenges, Grayscale has announced plans to launch a โMini Bitcoin ETF,โ featuring a reduced fee of 0.15%. The upcoming ETF is expected to have the lowest fee among available spot Bitcoin ETFs, offering investors a cost-effective alternative.
- The fee reduction strategy aims to address the lack of inflows into Grayscaleโs flagship product due to the current 1.5% fee.
- By introducing the Bitcoin Mini Trust, Grayscale aims to regain investor interest and enhance its market position.
- The Franklin Bitcoin ETF (EZBC) currently holds the title for the lowest-cost Bitcoin ETF, with a fee of 0.19%.
Market Update
Bitcoin (BTC) is currently trading at $66,300, marking a 2% increase in the past 24 hours, showcasing stability and potential for growth in the cryptocurrency market.
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