The cryptocurrency market witnessed a remarkable milestone as BlackRock's iShares Bitcoin Trust (IBIT) became the first U.S. spot Bitcoin ETF to surpass the $1 billion inflow threshold.
This achievement, as reported by Katie Greifeld, underscores growing investor confidence in cryptocurrency ETFs amid a volatile market.
BlackRock's IBIT led the charge with a substantial $371 million inflow, placing it ahead of Fidelity's Wise Origin Bitcoin Fund (FBTC), which also showed a strong performance with $881 million in total inflows.
Top performers
Per the latest data, there has been a significant shift in the cryptocurrency market landscape. On one side, BlackRock's IBIT is witnessing record inflows, while on the other, Grayscale's Bitcoin Trust (GBTC) reported considerable outflows.
Despite a high trading volume of $6,569 million, GBTC has faced massive outflows amounting to $1,634.1 million, which significantly overshadows the inflows into other Bitcoin ETFs.
On the other end of the spectrum, iShares Bitcoin Trust (IBIT) has attracted a remarkable $1,081.8 million in inflows, positioning itself as a potential leader in the Bitcoin ETF space.
Fidelity Wise Origin Bitcoin Fund (FBTC) is closely following IBIT, with $882.4 million in inflows, suggesting that these two funds are now the preferred vehicles for Bitcoin exposure among investors.
The collective inflows into all Bitcoin ETFs except GBTC total $2,890.2 million, which is substantial but still does not fully counterbalance the outflows from GBTC.
Evolving landscape of crypto funds
Following the Securities and Exchange Commission's approval of 11 spot Bitcoin ETFs, U.S. asset managers are pitching innovative cryptocurrency funds that could potentially reshape the market.
These proposed funds include leveraged Bitcoin exposure, Bitcoin-based options, and coverage of other digital currencies. ProShares disclosed plans for ETFs offering double the daily exposure to Bitcoin and others providing inverse returns.
Meanwhile, firms like Grayscale Investments and BlackRock are expanding their horizons, with the latter seeking to include exposure to other cryptocurrencies.
Gamza Khanzadaev
Tomiwabold Olajide
Yuri Molchan
