Spot Bitcoin ETF Frenzy Continues as BlackRock and Fidelity Capture 79% of Inflows: Report

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BlackRock’s IBIT Shatters Records: Fastest Growth in ETF History

BlackRock’s iShares Bitcoin ETF (IBIT) reaches $10 billion in assets within seven weeks, setting a new record for ETF growth.
Over three-quarters of IBIT’s assets come from inflows, surpassing the previous record held by SPDR Gold Shares (GLD).
The surge in Bitcoin price fuels the success of spot Bitcoin ETFs, with major financial platforms adding them to their offerings.

BlackRock Inc.’s iShares Bitcoin ETF (IBIT) achieved a historic milestone on Friday, amassing $10 billion in assets in a record-breaking seven weeks since its launch on January 11, 2024. This accomplishment marks the quickest any exchange-traded fund (ETF) has reached this level of assets. On Thursday, IBIT experienced an influx of approximately $604 million, following a record-breaking $612 million inflow the day prior, according to Bloomberg Intelligence data.

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Record-Breaking Growth of Bitcoin ETFs

Eric Balchunas, Bloomberg ETF analyst, highlighted IBIT’s remarkable achievement. Out of 3,400 trading ETFs, IBIT becomes one of only 152 to surpass the $10 billion threshold. Notably, more than three-quarters of IBIT’s assets under management come from inflows, with the remainder stemming from price gains. This breakthrough shatters the previous record held by SPDR Gold Shares (GLD), which took over two years post-launch in 2004 to reach a similar asset level, etf.com senior analyst Sumit Roy reports.

BlackRock, a global leader in asset management with $2.7 trillion across 408 iShares branded ETFs, initially sought permission to launch its cryptocurrency ETF in June 2023. This move came a decade after the Winklevoss twins first approached the SEC with a similar proposal. Analysts consider BlackRock’s entry into the spot Bitcoin ETF market a turning point in the prolonged regulatory struggle between the Securities and Exchange Commission (SEC) and ETF issuers vying to introduce the first spot Bitcoin fund.

Historical Milestones in the ETF Market

Morningstar ETF analyst Bryan Armour expressed his lack of surprise at iShares leading this market segment, given their influential role in reviving interest in spot Bitcoin ETF filings last summer. However, Armour finds it remarkable that iShares has overtaken Grayscale’s GBTC as the primary trading vehicle for Bitcoin.

Since the SEC’s approval of funds providing exposure to Bitcoin futures in 2021, the path to an ETF owning and trading on Bitcoin’s spot price faced multiple rejections. The watershed approval occurred on January 10, 2024, paving the way for firms like Fidelity Investments and Bitwise Asset Management to trade their funds the following day.

Bitcoin’s price has surged significantly, rising 20% in the past five days and 44% over the past month. This surge culminated in a breakthrough of $60,000 on Wednesday, a level not seen since November 2021, according to Coindesk data. This rally in Bitcoin’s price has propelled the assets in all spot Bitcoin ETFs, attracting new investments to these funds.

Rising Bitcoin Prices and Widespread Adoption of Spot Bitcoin ETFs

Financial service platforms such as Bank of America Inc.’s Merrill Lynch and Wells Fargo & Co. have incorporated spot Bitcoin ETFs into their brokerage services this week, further facilitating the flow of assets into these funds.

The launch of spot Bitcoin ETFs marks a significant triumph, surpassing expectations and attracting substantial investment from ETF investors. Following IBIT, Fidelity’s Wise Origin Bitcoin Fund (FBTC) holds about $6.5 billion in assets. This is followed by the ARK 21Shares Bitcoin ETF (ARKB) with $2.1 billion and the Bitwise Bitcoin ETF (BITB) with $1.5 billion. Investors are increasingly attracted to these funds, drawn by a blend of low fees, strong branding, and cryptocurrency expertise.

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