BlackRock’s Spot Bitcoin ETF Shatters Records with $527 Million Inflow

Key Takeaways:

• Record Inflows: BlackRock’s spot Bitcoin ETF, IBIT, witnessed a record-breaking net inflow of $527 million, marking the largest single-day intake since mid-March.
• Market Leader: On a single day, IBIT accounted for $526.7 million of the total $533.57 million net inflows across ten US spot Bitcoin ETFs.
• Competitor Performance: Fidelity’s FBTC and Invesco and Galaxy Digital’s BTCO also saw significant inflows, while VanEck’s HODL fund experienced a net outflow of $38.37 million.
• Growing Popularity: Since their approval in January, US spot Bitcoin ETFs have attracted $17.59 billion in net inflows, with a total market cap exceeding $62 billion.
• Future Prospects: The approval of spot Ethereum ETFs and potential future altcoin-based ETFs, like those for Solana, could further boost the market, driving significant investments.

BlackRock’s spot Bitcoin ETF has set a new record, drawing an impressive $527 million in net inflows. This significant influx marks the highest single-day intake since mid-March and underscores the growing investor interest in crypto ETFs.

Record-Breaking Inflows

On Monday, July 22, BlackRock’s spot Bitcoin ETF, known as IBIT, experienced a net inflow of $527 million, as reported by SoSoValue. This record-setting day accounted for $526.7 million alone, highlighting the ETF’s dominant position in the market. The total net inflow for ten US spot Bitcoin ETFs, excluding Bitwise’s BITB, was $533.57 million on the same day. BlackRock’s IBIT led this surge, followed by Fidelity’s FBTC with $23.72 million. Other notable inflows included Invesco and Galaxy Digital’s BTCO, which drew $13.65 million, and Franklin Templeton’s fund with $7.87 million.

Source: SoSoValue

Varied Performance Across Funds

While many funds saw positive inflows, VanEck’s HODL fund experienced a net outflow of $38.37 million. Meanwhile, Grayscale’s GBTC and Ark Invest’s ARKB showed no net activity for the day. Since their approval in January, US spot Bitcoin ETFs have attracted a cumulative $17.59 billion in net inflows, boasting a total market cap of over $62 billion. This trend highlights the increasing popularity and acceptance of crypto ETFs among investors.

Read More: All You Need to Know About Ethereum ETF

Future Prospects for Ethereum ETFs

The recent approval of spot Ethereum ETFs is expected to bring significant investments into the market. Eric Balchunas from Bloomberg predicts that these funds could attract 10 to 15% of the assets that spot Bitcoin ETFs have garnered. Citigroup estimates these funds could amass between $4.7 billion to $5.4 billion within six months. The approval of Ethereum ETFs could lead to broader acceptance and pave the way for more ETFs based on other cryptos, such as Solana.

The SEC’s approval of spot Ethereum ETFs is a pivotal moment for the crypto market. It represents the culmination of years of effort and persistence from various stakeholders. This approval not only legitimizes Ethereum as a valuable investment vehicle but also sets a precedent for other cryptos to be considered for similar financial products. The entry of Ethereum into the ETF market is expected to attract a new wave of institutional and retail investors, thereby increasing liquidity and stability in the market.

Following the approval of Ethereum ETFs, there is speculation about the potential for other altcoin-based ETFs. 21Shares and VanEck have already filed for spot Solana ETFs, although their approval remains uncertain. If approved, these ETFs could diversify the investment options available in the crypto market, offering investors exposure to a wider range of digital assets. The introduction of altcoin-based ETFs could also drive further innovation and competition within the market.

Additional Read: Bitcoin ETF vs Ethereum ETF 

Conclusion

BlackRock’s spot Bitcoin ETF’s record-breaking inflow of $527 million highlights the growing interest and confidence in crypto ETFs. The approval of Ethereum ETFs by the SEC is expected to bring substantial investments, further boosting the market. As the crypto ETF landscape continues to evolve, the potential for altcoin-based ETFs remains a key area to watch. These developments signal a bright future for crypto investments, offering new opportunities for investors and enhancing the overall market dynamics.

Source: coinpaprika