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Cryptocurrency News Articles
Bitcoin (BTC) ETF Market Dominated by BlackRock’s iShares Bitcoin Trust (IBIT)
Oct 22, 2024 at 08:30 pm
Bitcoin's [BTC] recent price journey has been nothing short of impressive. The coin has continued to make headlines be it for crossing critical price thresholds
Bitcoin [BTC] price journey continues to be an interesting watch. Especially, with the coin’s price continuing to make headlines be it for crossing critical price thresholds or hitting milestones in exchange-traded funds (ETFs) inflows.
During the week, BTC surged past the critical $68,000-mark, inching ever closer to the $70,000 valuation.
However, at press time the price had dipped to $67,442. While this marked a 2.25% drop over the past day, the monthly gains remained strong at 6.86%.
Now, the king coin remains around 3.65% away from reaching $70,000, and with the record inflows in Bitcoin ETFs, achieving this target wouldn’t be too far-fetched.
According to data from SoSo Value, on 21st of October, the total net inflows stood at $294.29 million, contributing to a cumulative total inflow of $21.23 billion.
Moreover, the total net assets stood at $65.34 billion, representing 4.88% of the cryptocurrency’s total market capitalization.
BlackRock’s IBIT dominates the Bitcoin ETF market
It is worth noting that a major contributor to these inflows was BlackRock’s iShares Bitcoin Trust (IBIT). Despite the price dip, IBIT recorded inflows of $329 million on 21st October.
Moreover, it outperformed all spot Bitcoin ETF products, surpassing $23 billion in total net inflows.
Eric Balchunas, senior ETF analyst at Bloomberg, noted on X that IBIT had an exceptional week. The ETF attracted $1.1 billion in new cash. Furthermore, it surpassed Vanguard’s VTI for third place in YTD flows.
As per the analyst, what made this achievement even more remarkable was that IBIT is a relatively new launch, competing with ETFs that have been established for over 20 years and manage hundreds of billions of dollars.
BlackRock’s IBIT now boasts $26 billion in AUM, placing it in the top 2% of all ETFs globally.
Bitcoin ETFs vs gold ETFs
These remarkable inflows do beg the question- Are Bitcoin ETFs pulling investors away from traditional safe-haven assets?
Balchunas had earlier highlighted this competition between Bitcoin and gold. In an interview with Bloomberg Surveillance, he noted,
“Bitcoin and the ETFs that launched may have stolen the thunder that would have otherwise gone to gold this year.”
The analyst went on to estimate that gold could have seen inflows of up to $10 billion, without the emergence of Bitcoin ETFs.
Much of this shift, he suggested, is a result of Bitcoin’s rising popularity and its increasing role as a competitor to gold in the asset market.
Institutions stack as retail interest fades
BTC ETFs’ market position serves as a strong indicator of rising institutional interest. Meanwhile, retail engagement has slowed.
According to recent data from Google Trends, searches for “Bitcoin” and “Bitcoin ETF” have seen a marked decline.
Interest in “Bitcoin ETF” has remained subdued since the launch of spot ETFs in January 2024, with a score of just 2 last week.
Similarly, searches for “Bitcoin” have dropped significantly from March, with a score of 33 last week. This stark contrast highlights the shift in market dynamics.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
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