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BlackRock’s spot Bitcoin ETF, iShare Bitcoin Trust (IBIT), has emerged resilient amid the financial challenges and market volatility currently facing Bitcoin (BTC). Even as Bitcoin’s price dips, institutional capital continues to flow into IBIT at an impressive rate.
As other players watch from the sidelines, BlackRock’s ETF positions itself at the forefront. It is capturing the lion’s share of investment as Bitcoin ETFs steadily gain momentum.
Institutional Heavy Capital Inflow Favors BlackRock’s IBIT
On October 24, BlackRock’s IBIT ETF attracted over $165 million, a staggering inflow nearly overshadowing all other US-listed Bitcoin ETFs combined. Institutional players are signaling confidence in IBIT, pumping their investments.
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This move is despite Bitcoin’s recent price decline from a recent high of $69,000 to $68,097.77, up by 1.30% in a single day, as per CoinMarketCap data. This inflow marks BlackRock’s ETF as a steady force in a competitive and unstable market, with a net inflow of $23.69 billion.
With this notable inflow, BlackRock’s IBIT surpassed prominent competitors like Grayscale’s GBTC and Fidelity’s FBTC. As a result, IBIT claims nearly 90% of all recent Bitcoin ETF inflows, leaving competitors behind.
Bitwise Gains Ground While Others Record Outflows
While BlackRock’s IBIT rides high, Bitwise’s Bitcoin ETF (BITB) emerges as a distant but noteworthy second, drawing $29.63 million on the same day. Interestingly, these two spot Bitcoin ETFs are the only products that saw positive institutional inflows. Market participants believe adding Osprey Bitcoin Trust to its portfolio may have contributed to the market boost.
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Meanwhile, Grayscale’s GBTC experienced a $7 million net outflow, even after recently adding digital products like Aave Trust and Avalanche Trust to its portfolio. This could also indicate that investors are shifting from higher-fee models to lower-cost ETF options.
Investors Prefers IBIT’s Low Fees
Even though Grayscale’s GBTC has $14 billion in assets, it is losing investors speculatively because of its high 1.5% fee. In comparison, BlackRock’s IBIT ETF has a much lower fee of 0.25% and manages $17 billion. The digital investment product earns $42.5 million each year.
Although GBTC is more profitable, bringing in $205 million annually. However, BlackRock’s low fees make it a better option for budget-minded institutions.
Notably, this shift toward Bitcoin ETFs is not limited to the US. Bloomberg ETF analyst Eric Balchunas revealed this week that European investors funneled over $105 billion into US-listed Bitcoin ETFs. A recent Binance report also highlighted that over 120 institutions have invested in Bitcoin ETFs, exceeding the 95 institutions that invested in gold ETFs.
