As a seasoned analyst with over two decades of experience in the financial markets, I must say that the performance of BlackRock’s IBIT is nothing short of remarkable. The sheer volume of capital inflows into this Bitcoin ETF, especially when compared to its peers and even some of the most established traditional ETFs, is a testament to the growing interest in digital assets among institutional investors.
On October 31st, there was a significant inflow of $318.8 million into BlackRock’s Bitcoin ETF (IBIT), even as the price of Bitcoin dipped by 4%. The price of Bitcoin fell approximately to $68,800 during this time.
Based on information from Farside Investors, the recent investment surge occurred after IBIT’s exceptional performance on October 30, which brought in a staggering $872 million, outperforming its previous high of $849 million achieved in March. The fund has now amassed over $2.1 billion in weekly investments.
Although BlackRock’s IBIT received substantial daily inflows on October 31st, the Bitcoin ETFs (12 in total) only saw a modest $32.3 million in net inflows that day – a significant drop from the impressive $893.3 million recorded the day prior, which was the second-highest single-day inflow since their launch.
Even as there’s a widespread decrease in investments for Bitcoin ETFs, it’s worth noting that Valkyrie’s BRRR was the only other fund to experience inflow of $1.9 million on Thursday. Conversely, many well-known funds experienced substantial outflows during this period.
Last week, Fidelity’s FBTC saw a reversal from its previous two weeks of inflows, recording an outflow totaling approximately $75.2 million. Moreover, during the same period, ARK 21Shares’ ARKB, Bitwise’s BITB, VanEck’s HODL, and Grayscale’s GBTC all reported a combined outflow of around $213.2 million.
BlackRock’s IBIT rises above traditional ETFs
BlackRock’s IBIT stands out, making it a strong competitor not just in the crypto market, but also among Exchange-Traded Funds (ETFs) across the broader industry.
Based on Bloomberg analyst Eric Balchunas’ analysis, IBIT surpassed popular ETFs such as VOO, IVV, and AGG over the past week, drawing in more investor funds than any other ETF. Having been introduced less than ten months ago, IBIT has rapidly amassed nearly $30 billion in assets, with approximately half of that sum accumulated within just the last month.
Among all the 13,227 Exchange-Traded Funds (ETFs), including well-established ones like VOO, IVV, and AGG, IBIT managed to attract more cash inflows than any other during the last week. It’s quite an accomplishment for a relatively new ETF, having been in existence only within the past 3 months to 1 year. Truly, it’s challenging to compete with these seasoned cash collectors, even for a brief period.
— Eric Balchunas (@EricBalchunas) October 31, 2024
From my perspective as an analyst, the combined holdings of U.S.-based spot Bitcoin Exchange-Traded Funds (ETFs) surpass the 1 million Bitcoin mark, moving steadily towards the approximately 1.1 million Bitcoins, rumored to be in the possession of the elusive creator of Bitcoin, Satoshi Nakamoto.
As I delved into my analysis on October 31st, I noticed an influx of funds into both IBIT and BRRR, which occurred during a broader downturn in Bitcoin’s (BTC) market performance. The digital currency’s price plummeted by 4.6%, from a peak of $72,859 to $69,505 at the time of my study. This price drop coincided with substantial liquidations across the crypto market, totaling approximately $246.38 million in long positions. Notably, Bitcoin alone accounted for around $78.45 million of these liquidations.
Spot Ether ETFs log $13m in inflows
On October 31st, while Bitcoin ETFs showed a mix of outcomes, Ethereum ETFs experienced modest but positive influxes. In total, the nine Ethereum ETFs brought in $13 million collectively, with all of this growth stemming from BlackRock’s ETHA, which gained an impressive $49.6 million in fresh investments.
Contrasting with other Ethereum ETFs, Grayscale’s ETHE had an outflow of approximately $36.6 million, while the rest stayed neutral for the day.
Initially, when it was published, the price of Ethereum (ETH) followed Bitcoin’s negative pattern, dropping by approximately 5.3%, settling at around $2,507.
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2024-11-01 10:22