BlackRock’s IBIT Bitcoin ETF Surpasses $10 Billion in AUM
BlackRock’s IBIT spot Bitcoin exchange-traded fund (ETF) has achieved a significant milestone by reaching $10 billion in assets under management (AUM) within just seven weeks of its launch on January 11. The fund currently holds over 162,000 Bitcoin, making it one of the few ETFs to surpass the $10 billion mark.
Spot Bitcoin ETF Performance
Nate Geraci, president of the ETF store, highlighted the achievement of IBIT by stating that only a fraction of ETFs globally have surpassed the $10 billion AUM mark, with most of them being established over a decade ago.
IBIT’s performance can also be seen through its inflows on Thursday, which contributed $603.9 million to its AUM. Although this amount narrowly missed the record set the day before at $612.1 million, it still demonstrates strong investor interest in the ETF. However, this increase was partially offset by outflows from Grayscale’s GBTC, totaling $598.9 million and marking the second-largest outflow recorded.
Despite the surge in outflows from GBTC, other U.S. spot Bitcoin ETFs like Fidelity’s FBTC and Bitwise’s BITB experienced notable inflows. However, net inflows for all U.S. spot Bitcoin ETFs combined declined to $92.4 million on Thursday compared to the record $673.4 million seen just a day earlier.
Following IBIT’s success, Fidelity’s FBTC ETF and Ark Invest 21 Shares’ ARKB have also seen significant growth. Fidelity’s FBTC now holds over 105,000 Bitcoin ($6.3 billion) in assets, while Ark Invest 21 Shares’ ARKB ranks third with over 34,000 Bitcoin ($2.1 billion).
Meanwhile, Grayscale’s GBTC has experienced a significant decline, with its holdings falling by 30% to just over 432,000 Bitcoin ($27 billion) since the introduction of spot Bitcoin ETFs.
European Bitcoin ETPs Experience Outflows
Analysts from BitMEX Research have noted a trend of outflows from Europe’s largest Bitcoin exchange-traded products (ETPs), suggesting a possible shift towards U.S.-based ETFs and profit-taking strategies. Since January 11, 2024, approximately $344 million has been withdrawn from the six major European Bitcoin ETPs, with $50 million of that occurring on February 29, 2024.
Overall, the U.S. spot Bitcoin ETFs broke their daily volume records on February 28, 2024, with nearly $7.7 billion worth of assets traded on that day alone. This represents a significant increase of 63.8% from their previous peak of $4.7 billion on their first day of trading.
Hot Take: The Rise of Spot Bitcoin ETFs
The rapid growth and success of BlackRock’s IBIT spot Bitcoin ETF reflect the increasing demand for cryptocurrency investment products among investors. With its AUM surpassing $10 billion within seven weeks, IBIT has become one of the top-performing ETFs in terms of assets under management.
This achievement also highlights the potential shift in investor preference towards spot Bitcoin ETFs compared to traditional investment vehicles like Grayscale’s GBTC. The decline in GBTC’s holdings and the outflows from European Bitcoin ETPs suggest that investors are seeking alternative options that provide direct exposure to Bitcoin through regulated and transparent ETF structures.
Furthermore, the record-breaking daily volume of U.S. spot Bitcoin ETFs indicates the growing interest and liquidity in the market. As more institutional and retail investors embrace cryptocurrencies, these ETFs offer a convenient and regulated way to gain exposure to Bitcoin’s price movements.
Overall, the rise of spot Bitcoin ETFs marks a significant milestone in the evolution of cryptocurrency investment products. With BlackRock’s IBIT leading the way and other major players like Fidelity and Ark Invest also experiencing growth, it is clear that these ETFs are reshaping the landscape of crypto investing.
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