BlackRock’s iShares Bitcoin Trust (IBIT) Sees Inflows Surpassing Grayscale’s GBTC
Just one day after the spot Bitcoin ETFs achieved a notable milestone with a net inflow of $1.05 billion, BlackRock’s IBIT saw inflows exceeding the total outflows of Grayscale’s GBTC for the first time.
According to data compiled by SoSo Value, as of March 13th, IBIT’s cumulative inflow amounted to $12.03 billion, whereas GBTC’s cumulative outflows stood at $11.4 billion.
BlackRock’s spot Bitcoin ETF – iShares Bitcoin Trust (IBIT) – has been one of the most popular investment vehicles since its approval two months ago enabling investors exposure to BTC’s price moves. It recorded net inflows of $586 million or 8,017 BTC on March 13th, pushing its total historical net inflow to above $12 billion.
The collective net influx into spot Bitcoin ETFs amounted to $683 million, while Grayscale’s GBTC observed a net outflow of $276 million or 3,779.9 BTC in a single day.
Meanwhile, Fidelity’s FBTC attracted $281.5 million in inflows, followed by ARK 21Shares’s ARKB with 44.6 inflows and Franklin Templeton’s EZBC with $19.1 million. VanEck’s HODL, on the other hand, raked in $16.5 million in inflows. The asset manager had recently slashed its fee to zero amidst heightened competition among competitors, resulting in inflows of $118.8 million just two days ago.
Bitwise’s BITB, Valkyrie ‘BRRR’, and WisdomTree’s BTCW settled for $5.6 million, $4.1 million, and $2.3 million respectively during the same period. There has been a total inflow of $11.8 billion since the ETFs were first greenlit by the US Securities and Exchange Commission on January 11th, 2024.
The latest stats emerged just a day after the spot Bitcoin ETFs reached a record-breaking net inflow of $1.05 billion, as BTC surged to a new all-time high above $73,000.
Expert Opinions on Spot Bitcoin ETF
Bitcoin’s upward momentum was significantly driven by pent-up demand for spot Bitcoin ETFs. However, doubts persist regarding whether the initial surge in demand for these funds is sufficiently strong to keep the world’s largest crypto asset afloat.
Financial advisors are bullish but not surprised by the size of inflows of these funds that were reluctantly approved by the SEC this year. Bitwise CIO Matt Hougan, for one, believes the demand for spot Bitcoin ETFs is “widespread and strong and will persist for a while.”
According to JMP Securities, these funds might experience inflows of over $220 billion by 2027, potentially resulting in a fourfold increase in Bitcoin’s price to $288,000, given the multiplier effect on the new capital.
Hot Take: BlackRock’s IBIT Surpasses GBTC Outflows
The iShares Bitcoin Trust (IBIT) from BlackRock has seen its net inflows surpassing Grayscale’s GBTC outflows, marking a significant milestone in the popularity of spot Bitcoin ETFs. IBIT recorded net inflows of $586 million on March 13th, pushing its cumulative inflow to over $12 billion. Meanwhile, GBTC experienced outflows of $276 million on the same day, resulting in cumulative outflows of $11.4 billion. This trend indicates the growing interest in spot Bitcoin ETFs and highlights the potential for further growth in this market.
Financial advisors and experts are optimistic about the future of spot Bitcoin ETFs. Bitwise CIO Matt Hougan believes that the demand for these investment vehicles is widespread and strong, and he expects it to continue for some time. JMP Securities predicts that spot Bitcoin ETFs could experience inflows of over $220 billion by 2027, potentially leading to a fourfold increase in Bitcoin’s price to $288,000.
The recent surge in inflows into spot Bitcoin ETFs comes as Bitcoin reached a new all-time high above $73,000. This demonstrates the significant role that these investment vehicles play in driving Bitcoin’s upward momentum. With BlackRock’s IBIT leading the way with its impressive inflows, it will be interesting to see how this market develops and whether other spot Bitcoin ETFs can attract similar levels of investment.
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