BlackRock’s IBIT Spot Bitcoin ETF Surpasses $10 Billion in AUM

adminMarch 3, 2024

BlackRock’s IBIT spot Bitcoin exchange-traded fund hit $10 billion in assets under management on Thursday, just seven weeks after receiving its second-largest daily inflows since its launch on January 11.

In Bitcoin terms, BlackRock’s IBIT fund reached over 162,000. BTC

+1.47%
($10 billion) under management, Fidelity’s FBTC has over 105,000 BTC ($6.3 billion) in assets.

“IBIT is the newest member of the $10 billion club, joining at the fastest pace ever,” said Eric Balchunas, Bloomberg ETF analyst. “The first $10 billion is difficult because so much of it has to come from flow (for IBIT, 78% of AUM is flow). The second $10 billion is easier because market valuation is a bigger variable. .”

“For context, only about 150 of the 3,400 ETFs have more than $10 billion in AUM,” said Nate Geraci, president of ETF Store. “Most of our products were released more than 10 years ago,” he said.

Ark Invest 21 Shares’ ARKB came in third with over 34,000 BTC ($2.1 billion), while nine newly created spot Bitcoin ETFs, excluding Grayscale’s converted GBTC fund, now have 344,000 BTC ($21 billion) in assets. dollars).

Meanwhile, Grayscale’s high-fee GBTC fund has fallen 30% since spot Bitcoin ETF trading began, from about 619,000 BTC ($38 billion) to just over 432,000 BTC ($27 billion).

BlackRock inflows and Grayscale outflows cancel each other out.

IBIT recorded inflows of $603.9 million yesterday, just shy of the record inflows of $612.1 million on Wednesday, according to BitMEX Research. However, this was largely offset by $598.9 million outflow from Grayscale’s second-largest convertible fund to date. Fidelity’s FBTC saw inflows worth $44.8 million, while Bitwise’s BITB saw inflows worth $21.7 million.

Amid the surge in GBTC outflows, outflows have also increased in products traded on Europe’s largest Bitcoin exchange over the past few days. “This is likely primarily due to a shift towards US ETFs, but there may also be some profit-taking,” analysts at BitMEX Research said. “$344 million has been outflowed from the top six European Bitcoin ETPs since January 11, 2024, $50 million of which occurred on February 29, 2024.”

Net inflows to all spot Bitcoin ETFs in the U.S. were $92.4 million on Thursday, down significantly from Wednesday’s net inflows of $673.4 million.

Globally, 119,604 BTC ($7.4 billion) was absorbed into Bitcoin investment vehicles in February, according to K33 Research analyst Vetle Lunde. “This is a new monthly high that surpasses the GBTC ‘arb’ peak flow of December 2020,” Lunde said.

Net monthly flows for Bitcoin investment vehicles globally. video: K33 Research.

Another big day for spot Bitcoin ETF trading volume

Trading volume for U.S. spot Bitcoin ETFs also hit its second-largest level on Thursday at $4.74 billion, following Wednesday’s record volume of $7.64 billion as the price of Bitcoin reached a high of $64,000. . Trading volume yesterday was again led by BlackRock’s IBIT at $1.9 billion, followed by Grayscale’s GBTC and Fidelity’s FBTC at $1.37 billion and $1.01 billion, respectively, according to The Block’s data dashboard.

According to The Block’s price page, Bitcoin is currently trading at $62,103, down 0.6% in the last 24 hours. Bitcoin rose nearly 45% in February, its biggest monthly gain since December 2020.

BTC/USD price chart. Image: Block/TradingView.

Updated with comments from Eric Balchunas.

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adminMarch 3, 2024