Despite the Dip in Bitcoin, Inflows into BlackRock's Bitcoin ETF Continue
BlackRock's spot Bitcoin ETF continues to attract investor interest despite fluctuations in Bitcoin prices. Following a 4% decline in Bitcoin's price to $68,800 over the last 24 hours, BlackRock's IBIT fund recorded a net inflow of $318 million during trading on October 31. This performance follows the fund's record inflow of $875 million on October 30, bringing total assets close to $30 billion. Furthermore, BlackRock's success has contributed to spot Bitcoin ETFs in the U.S. surpassing a cumulative total of over 1 million Bitcoins.
According to data from Farside Investors, the growth of IBIT has allowed the fund to surpass major ETFs in a short period of time. Bloomberg ETF analyst Eric Balchunas noted that despite launching less than ten months ago, BlackRock's Bitcoin ETF has outpaced established funds like VOO, IVV, and AGG.
Balchunas predicts that if the current growth rate continues, BlackRock will leave many competitors behind.
The Determining Role of Institutional Investors in Spot Bitcoin ETFs
Spot Bitcoin ETFs attracted approximately $900 million on Wednesday, boosting total Bitcoin assets above the 1 million BTC threshold. This growth, fueled by BlackRock and other funds, indicates the beginning of a new era in the crypto market. After Bitcoin reached an all-time high in March, spot Bitcoin ETFs experienced their best days as well. On Tuesday, inflows of $870 million continued with a surge to $893 million on Wednesday.
Ryan Rasmussen noted that institutional investors have been leading this influx. According to Rasmussen, following the initial wave from individual investors, asset managers have now started to invest significant amounts. BlackRock is believed to have built more trust among asset managers and institutional investors, and thus is not viewed as a contrarian opinion in the market.
This development is considered an important milestone in Bitcoin adoption. BlackRock’s iShares Bitcoin Trust ETF (IBIT) surpassed 429,000 BTC in assets, overtaking MicroStrategy, which identifies itself as a Bitcoin development company. These strategic moves demonstrate the increasing influence of ETFs in the market and indicate that Bitcoin's acceptance at the institutional level is continuing.