- On May 21, BlackRock’s spot Bitcoin investment fund dominated the market, accounting for 95% of total inflows into U.S. spot Bitcoin ETF funds.
- Preliminary data from Farside Investors revealed that BlackRock’s iShares Bitcoin Trust (IBIT) saw a significant net inflow of $290 million.
- In total, all eleven ETF issuers combined reported net inflows of $305.7 million on the same day.
BlackRock’s Bitcoin ETF Sees Record Inflows Amid Market Volatility
What’s Driving the ETF Market?
This substantial inflow marks the highest for BlackRock’s ETF fund since April 5, reversing a six-week trend of negligible or zero inflows. The recent figures also surpass the inflows recorded over the past 21 trading days. Over the last four trading days, more than $1 billion has returned to spot Bitcoin ETF funds, driven by Bitcoin’s volatile price surge. Adding the latest daily figures, BlackRock’s fund has achieved a total inflow of $16 billion since its inception. However, the fund’s official website lists assets under management (AUM) at $19 billion. This places BlackRock’s IBIT fund close to the sector leader, Grayscale’s GBTC spot ETF, which holds $20 billion in AUM according to its official counts.
Which Funds Are Seeing Movement?
Conversely, Grayscale’s GBTC reported zero inflows on May 21, marking five consecutive days without outflows. The fund saw an inflow of $72.5 billion over the past five days, reversing a trend of four months of constant outflows. On May 21, while BlackRock saw large inflows, VanEck Bitcoin Trust ETF (HODL) experienced an outflow of $5.9 million, and Bitwise Bitcoin ETF (BITB) had an outflow of $4.2 million. Fidelity Wise Origin Bitcoin Fund (FBTC) recorded a smaller inflow of $25.8 million, with other funds reporting zero inflows.
Market Reactions and Future Outlook
The enthusiasm surrounding Bitcoin ETFs was significantly influenced by Bitcoin’s 12% price increase over the past week, culminating in a six-week high of $71,600 on May 21. However, by early trading on May 22, Bitcoin’s price dipped to $69,444, falling below the $70,000 mark. The notion of the Securities and Exchange Commission potentially approving spot Ethereum ETF funds in the U.S. also stirred the crypto markets this week, further buoying investor sentiment.
Conclusion
BlackRock’s Bitcoin ETF saw a massive inflow on May 21, highlighting the growing investor interest in cryptocurrency ETFs. The rise in Bitcoin’s price sparked increased ETF activity, and market optimism was further strengthened by the potential SEC approval of Ethereum ETFs. Investors should remain cautious, as cryptocurrencies carry high volatility and risk. Conducting thorough research before making investment decisions is crucial.
