BlackRock's Bitcoin ETF Inflows Surge To Record High

In particular, on May 21, BlackRock’s iShares Bitcoin Trust (IBIT) posted a spectacular $290 million inflow, which can be regarded as a turning point for the fund. This single-day inflow is even higher than the net fund that the fund has received in the last 21 trading days. Preliminary information from Farside Investors indicates that the IBIT contributed to 95% of the total inflow into US spot Bitcoin ETFs on Tuesday, with over $300 million in net inflow.

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Reversing a Six-Week Trend

This is the largest amount of net fund creation for BlackRock’s ETF since April 5, and only the second week in the past six that has seen any inflows at all. In total, spot Bitcoin ETFs have attracted more than $1 billion in the past four trading sessions on the back of a shaky Bitcoin rally. So far, BlackRock has managed to gather $16bln in inflows since its launch, ranking it second only to Grayscale’s GBTC with $20bln AUM.

This has placed BlackRock firmly on the map as a significant player in the Bitcoin ETF market through IBIT inflows. For instance, Grayscale’s GBTC product had no inflows on May 21 and has gone five days straight without outflows, after experiencing outflows for the previous four months. It has attracted $72.5 billion worth of inflows in the past five days.

Market Reactions and Competitor Performance

Another important point is that while BlackRock’s IBIT took place, other Bitcoin ETFs had mixed outcomes. The VanEck Bitcoin Trust ETF (HODL) revealed that there was a fund outflow of $5.9 million, and the Bitwise Bitcoin ETF (BITB) outflow of $4.2 million. On the other hand, the Fidelity Wise Origin Bitcoin Fund (FBTC) achieved a rather tiny inflow of $25.15 million while the rest of the funds had no change.

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This increased interest in Bitcoin ETFs has been prompted by the recent upsurge in BTC prices by 12 percent in the past one week. Bitcoin reached $71,600 on May 21, which is the highest it has been in the last six weeks, but it slightly fell to $69,444 at the beginning of May 22 trading session. The expectation of spot Ethereum ETFs to be approved by the Securities and Exchange Commission (SEC) in the United States has also contributed to the crypto market’s rally this week.