BlackRock’s Bitcoin ETF continues to record significant daily inflows despite the fluctuating market.
BlackRock’s IBIT exchange-traded fund (ETF) has continued to attract significant daily inflows despite Bitcoin’s BTC $94 296 24h volatility: 1.3% Market cap: $1.87 T Vol. 24h: $21.81 B recent decline to $67,500, down from a high of $69,000 earlier in the week.
On October 24, institutional investors funneled over $165 million into IBIT, positioning it as a preferred crypto product amidst a fluctuating market. Data from SoSoValue reveals that the fund now has a cumulative net inflow of $23.69 billion, outpacing rivals such as Grayscale’s GBTC and Fidelity’s FBTC.
Grayscale’s GBTC Records Another Daily Outflow
On October 24, total inflows into all US-listed Bitcoin ETFs stood at just under $200 million, with BlackRock‘s IBIT accounting for almost 90% of this figure.
Bitwise’s Bitcoin ETF (BITB) was the second most popular choice, attracting $29.63 million. The two investment products were the only spot Bitcoin ETFs that recorded any inflows from institutional investors. Apart from Grayscale’s Bitcoin Trust (GBTC), the remaining nine ETFs were on the fence, with neither inflow nor outflows recorded.
Data from SoSoValue indicates that GBTC was the only Bitcoin ETF experiencing outflows as of October 24, with investors withdrawing over $7 million in a single day. The fund’s daily net inflow currently stands at $20.11 billion, having faced significant outflows throughout October.
Despite this, GBTC remains a strong revenue generator, outperforming competitors like BlackRock’s IBIT. According to reports, Grayscale‘s Bitcoin Trust has around $14 billion in assets under management (AUM) and produces approximately $205 million in annual revenue due to its 1.5% fee rate.
In comparison, BlackRock’s IBIT manages $17 billion but earns $42.5 million annually, resulting from a lower 0.25% fee. This fee difference makes GBTC five times more profitable than IBIT, despite recent investor shifts to lower-cost ETF options.
Bitcoin ETFs See Massive Institutional Adoption
Despite the varied performances, institutional demand for crypto investment products is still on the rise. Earlier this week, Eric Balchunas, a senior ETF analyst at Bloomberg, revealed that European investors have injected more than $105 billion into the US-listed Bitcoin ETFs.
Europe ♥️’s America.. flows into US-focused ETFs by locals in Europe is now at a record $105b YTD. And why not? $SPY is up 24% vs 10% for Europe. Asia also funneling record flows over here as well via @psarofagis pic.twitter.com/zjE7MoiXIX
— Eric Balchunas (@EricBalchunas) October 21, 2024
A separate report by Binance, the leading global crypto exchange with over 200 million users worldwide, shows that institutional interest in the product surpassed that of early gold ETFs during its first year of launch.
Currently, more than 120 financial institutions worldwide are invested in the product, compared to Gold ETFs, which attracted only 95 investors within the same period.
In addition to the massive institutional adoption, Bitcoin ETFs have reached several key milestones in their short time on the market. On October 17, Balchunas shared on X that the products crossed $20 billion in total net inflows, which the analyst described as “the most difficult metric to grow” for ETFs. He further disclosed that the threshold took over five years for Gold-based ETFs to achieve.
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