- The cryptocurrency market is witnessing significant movements with Bitcoin ETFs drawing considerable attention.
- Institutional investors are increasingly favoring Bitcoin ETFs, leading to notable inflows and outflows.
- BlackRock’s IBIT is on the verge of surpassing Grayscale’s GBTC in assets under management (AUM).
Discover the latest trends in Bitcoin ETFs as BlackRock’s IBIT edges closer to overtaking Grayscale’s GBTC in AUM, amid a surge in institutional interest.
BlackRock’s IBIT Surges in Inflows
While the entire crypto community remains focused on the approval of spot Ethereum ETFs, institutional investors continue to increase their exposure to Bitcoin ETFs. The U.S. spot Bitcoin ETFs have recorded eight consecutive days of inflows, with BlackRock’s IBIT leading the charge.
BlackRock To Overtake Grayscale
On May 22, the net inflow of Bitcoin spot ETF amounted to $154 million, extending the streak of net inflows for eight consecutive days, according to data from Farside Investors. On the same day, Grayscale’s GBTC experienced an outflow of $16.0914 million, while BlackRock’s IBIT recorded a single-day inflow of $91.9527 million. Additionally, Fidelity’s FBTC saw an inflow of $74.572 million.
With this development, BlackRock is on the verge of overtaking GBTC as the largest Bitcoin ETF with the most assets under management. Bitcoin ETFs have been hitting new milestones, accumulating more than 850,000 Bitcoins so far. Similarly, global ETFs are close to accumulating more than 1 million BTCs.
Growing Demand for Bitcoin ETFs Worldwide
On Wednesday, May 22, WisdomTree, a leading global asset manager, achieved a noteworthy milestone in the cryptocurrency investment arena. The company revealed that it has received authorization from the U.K. Financial Conduct Authority (FCA) to introduce Exchange-Traded Products (ETPs) for Bitcoin and Ethereum on the London Stock Exchange (LSE).
Bloomberg strategist Eric Balchunas noted that while the news holds true, only physically backed Bitcoin ETFs are permitted, with two from WisdomTree set to commence trading initially. Additionally, a retail ban remains in effect, underlining the regulatory nuances surrounding these investment products.
According to Glassnode analytics, the Bitcoin market has undergone a period of cooling off following months of notable distribution pressure. Despite modest capital inflows, the decrease in selling activity and a reduction in volatility indicate the potential for a significant market shift in the near future.
Conclusion
The recent surge in Bitcoin ETF inflows, particularly from BlackRock’s IBIT, highlights the growing institutional interest in cryptocurrency investments. As BlackRock edges closer to overtaking Grayscale’s GBTC in AUM, the market is poised for further developments. Investors should stay informed about regulatory changes and market dynamics to make well-informed decisions in this evolving landscape.
