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BlackRock’s Bitcoin ETF Triumphs: Massive $260 Million Inflow on Day 7 (crypto-news-flash)

  • Seven days after launch, BlackRock’s ETF continues to pull away from the competition, reeling in $260 million on the seventh day of trading.
  • Fidelity has kept pace with BlackRock at $159 million, while the others have combined to ensure that the overall net inflow stays above a billion dollars despite Grayscale’s massive outflow.

When BlackRock launched its Bitcoin spot ETF, it was obvious that the Wall Street giant would dominate the market. This is precisely how it has panned out, and on its seventh day, the iShares Bitcoin Trust (iBIT) reeled in $260 million to maintain its lead as the king of the spot ETFs.

Data from BitMEX Research reveals that iBIT led the pack, with its $260.6 million being the highest it has brought since Wednesday, January 17, when it recorded net inflows of $371 million. In total, it has brought in $1.69 billion.

As Bloomberg’s Eric Balchunas revealed, iBIT is seventh on the list of all ETFs for year-to-date flow. All the other ETFs above it are at least 14 years old; two have been around for over 24 years.

Bitcoin Spot ETFs Day 7 Flow

Flow data out for all prioviders. Total net outflow for day 7 is $87.5m. Third net outflow day so far.

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🧵pic.twitter.com/VhUeYVu3mE

— BitMEX Research (@BitMEXResearch) January 23, 2024

Fellow Wall Street giant Fidelity is the only ETF provider that has kept pace with BlackRock. On Monday, it brought in $158.7 million in net flow as the two financial behemoths continue to pull away from the pack. Since their debut, Fidelity has edged out BlackRock and recorded higher net inflows on three separate occasions. It has brought in $1.44 billion in total.

Bitwise at $41,6 million and Ark at $65 million were the two other notable inflows on Monday, hitting $492 million and $447 million in total inflows. The other ETF providers failed to hit $10 million in net flows.

Grayscale continues to bleed, and on Monday, it lost $640.5 million, bringing the assets under management in its GBTC ETF to $22 billion. This was the company’s highest outflow in a seven-day period, in which it lost $3.447 billion.

Due to Grayscale’s massive outflow, the net flow for the entire sector settled at a net outflow of $87.5 million on Monday. However, in total, the net flow is at $1.08 billion.

What’s in the Future for Bitcoin ETFs?

The key aspect that sets spot ETFs apart from futures ETFs is that they purchase actual BTC while the latter speculates on BTC derivatives. As BitMEX Research shows, BlackRock has accumulated over 40,000 BTC while Fidelity has racked up just over 34,000 BTC. For context, the Bitcoin network only produces 900 BTC per day as block reward.

In total, the ETFs have purchased over 112,000 BTC in just seven days, and at this rate, they will own a significant chunk of all BTC in circulation in a few months.

While ETFs continue to see inflows, the price of BTC has failed to keep up. Since they launched, BTC has lost 20% of its value, and in the past day, it shed another 5% to trade at $38,700.

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