As an analyst with over two decades of experience in the financial markets, I have witnessed the rise and fall of numerous investment trends. However, the rapid growth and institutional adoption of Bitcoin (BTC) through exchange-traded funds (ETFs) is truly remarkable.
As a researcher, I’ve noticed that BlackRock, a leading investment asset management firm, has been consistently active in acquiring Bitcoin (BTC). Last Friday, they made a significant move, outshining other Bitcoin ETF issuers by purchasing an impressive $292 million worth of the pioneering digital currency, effectively taking center stage.
BlackRock and institutional investors’ support
Based on information from Farside Investors, the investment flow into BlackRock’s iShares Bitcoin Trust (IBIT) nearly hit $300 million. This significant influx pushed the firm’s total net inflows to a staggering $23.98 billion. Notably, over the past few days, it has been common for BlackRock to lead these investment flows.
On Oct. 24, BlackRock’s Bitcoin ETF stood out, receiving the bulk of inflows, with $165.54 million.
This indicates an increase in investor trust and curiosity towards the company’s crypto ETF offerings. Unlike Grayscale, which charges a sponsor fee of 1.5%, BlackRock only asks for 0.25%. This lower fee structure may be the advantage that makes IBIT more appealing to both institutional and retail investors, particularly those aiming for cost efficiency and investment exposure.
Furthermore, this also signifies institutional investors’ determination to acquire a piece of the highly volatile crypto market via ETFs.
Fidelity gives way for BlackRock’s IBIT
The Fidelity fund FBTC, which is similar to BlackRock’s IBIT, attracted $56.9 million in investments recently. Interestingly, on October 14, FBTC held the top spot among Bitcoin ETF funds with an inflow of $239.3 million. In contrast, BlackRock saw only $79.5 million in investments on that day, but has since then outperformed other funds in the market.
On a Friday, there were $33.4 million inflows into ARK 21Shares’ ARKB fund, while products from Invesco, Franklin Templeton, Valkyrie, and WisdomTree saw zero inflows. The Bitcoin ETF sector is rapidly growing, with a prediction that Bitcoin ETFs will soon surpass 1 million Bitcoins in holdings to outshine the creator of Bitcoin, Satoshi Nakamoto.
97% of the targeted one million Bitcoins are held by Exchange-Traded Funds (ETFs), with BlackRock being the main distributor of these funds.
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2024-10-26 18:28