BlackRock's Bitcoin ETF Attracts $500 Million in First Two Days
Date: 2024-01-15 Author: Dima Zakharov Categories: BUSINESS
BlackRock's newly launched spot Bitcoin ETF, known as IBIT, has made waves in the cryptocurrency market by attracting nearly $500 million in investments within its first two days. This achievement highlights the growing interest and confidence in Bitcoin among institutional investors.
Bloomberg Intelligence analyst Eric Balchunas reported on the remarkable success of IBIT, stating that it had outperformed other Bitcoin funds in terms of net inflows. With a net total of +$819 million, IBIT has established itself as a leading contender, leaving behind the competition. Fidelity's Bitcoin ETF, FBTC, closely follows with an influx of $422 million, while Bitwise takes the third position with $237 million in liquidity inflow. In stark contrast, WisdomTree's ETF received only $1 million in investments during the same period.
However, one Bitcoin fund, Grayscale Investments' GBTC, experienced outflows amounting to $579 million. JPMorgan Chase recently predicted that GBTC could face a total outflow of $13 billion, attributing the loss of liquidity to its high 1.5% fee.
Despite these variations, the overall sentiment surrounding Bitcoin ETFs remains positive. On the first day alone, spot Bitcoin ETFs saw a combined trading volume of approximately $4.5 billion, signifying a strong demand for cryptocurrency investment options. BlackRock's IBIT has undoubtedly set a high standard for its competitors with its impressive initial performance in the market.
