Despite the steady inflows into Bitcoin ETFs, the crypto market remains ever volatile.
The recent price drop of Bitcoin BTC $84 456 24h volatility: 0.6% Market cap: $1.68 T Vol. 24h: $9.26 B could not hold BlackRock’s iShares Bitcoin Trust (IBIT) down as the fund recorded an impressive $329 million in new investments on Monday. While Bitcoin’s value slipped below $67,000, IBIT continued to see strong inflows, ensuring that the US-based spot Bitcoin exchange-traded funds (ETFs) ended the day with a positive net flow.
According to Farside Investors data, the ETFs saw a cumulative inflow of over $2.5 billion on Monday. This meant that the funds were now on a seven-day streak of seeing positive flows.
Investors Show Strong Interest in BlackRock’s IBIT
The strong performance being posted by IBIT reflects the general state of mind of institutional investors. Particularly, in the way that they view these funds as a safer and more convenient way to gain exposure to Bitcoin. That explains the high demand for Bitcoin ETFs that has now led to seven consecutive days of winning for them.
However, while the demand might be general, investors have shown to have preferences when it comes to the funds. BlackRock’s IBIT is a clear leader in that regard, having attracted over $1 billion in new capital last week alone. This accounts for nearly half of all net inflows into US spot Bitcoin ETFs, making IBIT a popular choice for investors. Particularly those looking to take advantage of Bitcoin’s performance without directly holding the cryptocurrency.
Speaking about IBIT’s success so far, Bloomberg’s ETF analyst Eric Balchunas noted that the fund has now surpassed Vanguard’s Total Stock Market ETF in year-to-date inflows. This places IBIT in the overall third spot.
Interestingly, IBIT has achieved all this within just ten months of launching. As of October 18, the value of Bitcoin held by IBIT was $26.5 billion. That is, according to updated data from BlackRock.
Fidelity’s Bitcoin Fund (FBTC) joins BlackRock’s IBIT as another gainer on Monday. The fund also reported a modest gain of $6 million, further proving that institutional interest remains steady.
For other prominent Bitcoin ETFs, the story was different. Funds from Bitwise, ARK Invest/21Shares, VanEck, and Grayscale (GBTC), saw a combined total of over $40 million in outflows, with some funds recording zero flows.
Market Outlook Remains Uncertain
Despite the steady inflows into Bitcoin ETFs, the crypto market remains ever-volatile. Bitcoin peaked at $69,500 earlier this week but quickly retreated below $67,000. As of this publication, it was trading at around $67,500, down over 2% in the last 24 hours.
Meanwhile, market analysts have even cautioned about the possibility of increased volatility over the coming weeks. They warn that ongoing global tensions and the upcoming US elections could further impact market stability.
So, while the market continues to face uncertainty, the sustained inflows into IBIT and other ETFs suggest that institutional investors remain optimistic about Bitcoin’s long-term prospects.
next