BlackRock’s Spot Bitcoin ETF Witnesses Surge in Inflows
In a recent interview with Bloomberg, Rachel Aguirre, the head of product at BlackRock U.S. iShares, shared that the firm’s spot Bitcoin ETF (IBIT) has experienced a significant increase in inflows. These inflows primarily come from retail investors and newcomers to the cryptocurrency space.
This revelation comes after the impressive performance of IBIT, which has maintained its position as the top U.S. spot Bitcoin ETF in terms of total volume.
Impressive Inflows for BlackRock’s IBIT
According to data from Nasdaq, the total trading volume of U.S. spot Bitcoin ETFs reached nearly $10 billion within three days of trading. IBIT contributed approximately $1.9 billion to this figure.
Analysts from Standard Chartered had previously predicted that spot Bitcoin ETFs would see inflows surpassing $1 billion in the first three months. The trading volume during the initial three days aligns with these expectations.
BlackRock’s IBIT Shows Strong Performance
Since its debut on NASDAQ, BlackRock’s IBIT has continued to perform well and has become the third-largest Bitcoin holder among public companies. This success has sparked conversations among investors who are closely monitoring BlackRock’s activities in the cryptocurrency market.
Bloomberg’s ETF analyst, Eric Balchunas, commented on BlackRock’s growing influence and stated that it is only a matter of time before they surpass tech giant MicroStrategy in terms of Bitcoin holdings.
IBIT Emerges as a Strong Competitor to GBTC
The remarkable inflows into IBIT have positioned it as a strong contender against Grayscale Bitcoin Trust (GBTC), also known as the ‘Liquidity King’ due to its established presence and large number of holders. IBIT recorded significant flows of around $497.7 million in its first two days, allowing BlackRock to acquire approximately 11,500 Bitcoins for its fund.
Fidelity Investments’ FBTC closely follows IBIT, with notable total flows of $422.3 million over the same period and a trading volume of $170.1 million on day three.
Hot Take: BlackRock’s IBIT Gains Momentum in the Crypto Market
The spot Bitcoin ETF offered by BlackRock, known as IBIT, has seen a surge in inflows from retail investors and newcomers to the cryptocurrency space. With impressive trading volume and strong performance, IBIT has emerged as a formidable competitor to other Bitcoin ETFs like GBTC. As BlackRock continues to make assertive moves in the crypto market, it is poised to become a major player in Bitcoin holdings. The success of IBIT highlights the increasing interest and adoption of cryptocurrencies among retail investors.
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