As a seasoned crypto investor with over a decade of experience under my belt, witnessing the unprecedented growth and acceptance of Bitcoin by traditional financial giants like BlackRock is nothing short of exhilarating. The success of their spot Bitcoin ETF not only validates the potential of digital assets but also underscores the shift in perception towards this once-maligned technology.
Last week, the desire from Wall Street for Bitcoin-related products significantly increased, resulting in approximately $1.1 billion being channeled into BlackRock’s direct Bitcoin exchange-traded fund (ETF).
BlackRock, a prominent player in U.S. wealth management, is giving significant attention to Bitcoin (BTC). Its Bitcoin ETF, which deals directly with cryptocurrency, has surpassed many conventional financial products in performance.
As an analyst, I’ve observed a significant development: Investors have poured approximately $26 billion into BlackRock’s IBIT, which is their Bitcoin-focused investment trust, a mere 10 months after the debut of spot Bitcoin ETFs in mid-January. Remarkably, this fund has managed to break into the top 2% of all Exchange Traded Funds (ETFs) in the U.S., and last week’s inflows serve as another testament to BlackRock’s growing influence in the Bitcoin ETF market.
Approximately half of the $2.2 billion invested in U.S. Bitcoin exchange-traded funds (ETFs) between October 14th and October 18th came from BlackRock’s IBIT account. This influx of $1.1 billion boosted IBIT to the third highest inflows for the year so far. The past week marked IBIT’s strongest performance since March, solidifying its reputation as the fastest-growing ETF on Wall Street and in financial history.
Breaking News: Bitcoin ETF from BlackRock is now the third-largest ETF in terms of inflows this year!
— Bitcoin Magazine (@BitcoinMagazine) October 21, 2024
The success of U.S. spot Bitcoin ETFs has garnered consistent media attention and sparked policy discussions around Bitcoin as an asset. While similar discussions surround Ethereum (ETH) spot Ether ETFs have seen more modest milestones compared to their Bitcoin counterparts.
As a researcher, I find it striking to note that the inflow of BlackRock’s IBIT eclipsed the collective $7.35 billion deposited into all spot Ethereum Exchange-Traded Funds (ETFs). Yet, despite this, Bitwise CIO Matt Hougan maintains a positive outlook, believing that Ethereum ETFs will eventually prove successful in their endeavor.
According to Hougan, even though issuers might have launched Ethereum ETFs prematurely, the growing ecosystem of Ethereum and its increasing allure for institutional investors due to its smart contract functionalities are expected to draw more investments towards Ethereum funds in the upcoming years.
Previously established crypto investment funds have sparked additional applications for Exchange Traded Funds (ETFs) focused on digital assets. Bitwise recently submitted proposals to the Securities and Exchange Commission for an XRP ETF and a Bitcoin-Treasury ETF. Additionally, Canary Capital, founded by Valkyrie’s original founder Steven McClurg, has also filed for a Litecoin (LTC) spot fund.
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2024-10-21 17:54