Nikolas Sargeant
In the year 2024, the BlackRock iShares Bitcoin Trust (IBIT) has emerged as a standout exchange-traded fund (ETF), securing a spot among the top five ETFs in terms of inflows. This achievement is underscored by Bloomberg Intelligence data.
H2 BlackRock’s Bitcoin ETF Leads the Way
Despite a delayed debut on NASDAQ due to pending SEC approval, the BlackRock ETF has rapidly climbed to the top 0.16% of the 3,109 ETFs traded in the United States. This revelation comes from Eric Balchunas, a senior Bloomberg ETF analyst.
Got our first holder reported for $IBIT, it's a Canadian asset manager called Redwood, looks like it sold the local Purpose Bitcoin ETF which is >1% fee and bought the US-based $IBIT which is free till first $5b and 25bps thereafter. Great cost migration hitting crypto funds. pic.twitter.com/d0OC5vHkWn
— Eric Balchunas (@EricBalchunas) February 6, 2024
Balchunas' further analysis reveals an even more impressive standing at 0.02% when comparing BlackRock’s ETF performance against an estimated 10,000 ETFs globally. The Fidelity Bitcoin Fund also demonstrates robust performance, securing $2.51 billion in inflows and ranking eighth among U.S.-based ETF products.
Both BlackRock and Fidelity Bitcoin ETFs have witnessed an upward trajectory in their rankings, moving from eighth and tenth positions at the end of January.
Among ETFs, the iShares Core S&P 500 ETF (IVV) leads the pack with $13 billion in inflows this year and an impressive assets-under-management (AUM) of $428 billion. Following closely is the Vanguard 500 Index Fund ETF (VOO) with $11.1 billion in inflows and nearly $398 billion in AUM.
Grayscale’s Bitcoin ETF Witnesses Slowed Outflows
Grayscale’s spot Bitcoin ETF has experienced its sixth consecutive day of diminishing outflows, totaling $73 million on February 6, according to BitMEX Research and Bloomberg ETF analyst James Seyffart.
Inflows from other Bitcoin ETF issuers have consistently outpaced the outflows from Grayscale’s GBTC for at least seven consecutive days. The most recent outflow figure represents an 88% decline from Grayscale’s peak outflow day on January 22, which recorded a massive $640 million exiting the newly converted ETF.
The launch of spot Bitcoin ETFs generated considerable enthusiasm, especially in their first week following the January 11 debut, witnessing a net inflow of $1.06 billion. These ETFs, managing over 100,000 BTC valued at approximately US$4 billion (excluding Grayscale’s Bitcoin Trust - GBTC), made a strong market entry.
