BlackRock’s iShares Bitcoin Trust leads unprecedented growth in Bitcoin ETFs, drawing $526.7 million in a single day. With a market cap exceeding $22 billion, IBIT outperforms traditional ETFs, signalling growing mainstream acceptance of cryptocurrency investments.
In this post:
- Record-breaking inflows: BlackRock’s iShares Bitcoin Trust (IBIT) attracted $526.7 million in net inflows on July 22, 2024, leading a group of ten spot Bitcoin ETFs that collectively drew in nearly $534 million in a single day.
- Market dominance: IBIT’s market cap now exceeds $22 billion, outperforming the Nasdaq ETF in terms of inflows this year and ranking fourth among over 3,000 US ETFs.
- Sustained growth: US spot Bitcoin ETFs have captured over $2 billion in the past two weeks and $17 billion in year-to-date net inflows, indicating growing mainstream acceptance of Bitcoin as an investment vehicle despite market volatility.
The world of cryptocurrency investments is experiencing a seismic shift, with Bitcoin Exchange-Traded Funds (ETFs) at the forefront of this revolution. Leading the charge is BlackRock’s iShares Bitcoin Trust (IBIT), which has been breaking records and reshaping the landscape of digital asset investments.
On July 22, 2024, IBIT attracted an astounding $526.7 million in net inflows, highlighting the growing appetite for spot Bitcoin funds. This remarkable performance wasn’t isolated; it marked the twelfth consecutive day of gains for a group of ten spot Bitcoin ETFs. Collectively, these funds drew in nearly $534 million in inflows on that single day, according to data from SoSoValue.
While IBIT dominated the scene, other funds also saw significant interest. The Fidelity Wise Origin Bitcoin Fund (FBTC) secured second place with $23.7 million in inflows, followed by the Invesco Galaxy Bitcoin ETF (BTCO) with $13.7 million. The Franklin Bitcoin ETF (EZBC) also reported positive flows of $7.9 million.
However, not all funds shared in the success. Several ETFs, including those issued by ARC, 21Shares, Valkyrie, Grayscale, Hashdex, and WisdomTree, saw no flows on that day. In a surprising turn, the VanEck Bitcoin ETF (HODL) was the only fund to report losses, with investors withdrawing almost $38.4 million.
The success of IBIT has been particularly noteworthy. With Monday’s gains, its market cap now exceeds $22 billion. Crypto analyst Quinten François pointed out that IBIT has outperformed the Nasdaq ETF in terms of inflows this year, ranking fourth among over 3,000 US ETFs. This performance underscores the growing mainstream acceptance of Bitcoin as a legitimate investment vehicle.
The trend extends beyond a single day or week. US spot Bitcoin ETFs have collectively captured over $2 billion in the past two weeks alone. Year-to-date, these funds have notched an impressive $17 billion in net inflows, according to Bloomberg ETF analyst Eric Balchunas. Importantly, Balchunas noted that these inflows are not influenced by Bitcoin’s price appreciation, indicating genuine investor interest rather than speculative fervour.
BlackRock’s success with IBIT isn’t new. On July 16, the fund gathered $260 million, contributing more than half of all net inflows into spot Bitcoin ETFs that day. This marked the eighth consecutive day of positive net inflows for US spot Bitcoin ETFs, reaching $422.5 million – the best-performing day since June 5, according to Farside Investors.
The surge in ETF investments comes despite recent market volatility. Bitcoin’s price, currently at $65,470, has rebounded 13.1% over the last week after falling to a five-month low of $53,600 on July 5. The earlier price drop was partly due to concerns over the German government selling nearly 50,000 Bitcoins and news of Mt. Gox is preparing to repay over $9 billion to creditors.
Adding weight to the growing acceptance of Bitcoin, BlackRock’s CEO Larry Fink recently referred to it as a “legitimate” financial instrument capable of shielding against currency debasement. This endorsement from a major figure in traditional finance further bolsters investor confidence in cryptocurrency investments.
Future of Bitcoin ETF
As the cryptocurrency market continues to evolve, the success of Bitcoin ETFs, particularly BlackRock’s IBIT, suggests a maturing landscape where digital assets are increasingly intertwined with traditional finance. This trend may signal a new era of mainstream acceptance for cryptocurrencies as investment vehicles, potentially reshaping the future of finance.
