BlackRock’s iShare Bitcoin Trust (IBIT) registered its first daily net inflow in three weeks, leading to US spot Bitcoin exchange-traded-funds (ETFs) witnessing a combined net inflow of $12.8 million, data from Farside Investors confirms.
BlackRock’s Spot Bitcoin ETF Attracts Net Inflows, How About Other ETFs?
BlackRock forayed into the Bitcoin ETF space when the US Securities and Exchange Commission (SEC) approved IBIT in January 2024.
Dubbed the world’s largest asset manager with a total asset-under-management (AUM) of $9 trillion, BlackRock’s entry into the nascent crypto ETF ecosystem was met with much enthusiasm by investors as it not only brought a degree of sophistication but also exhibited institutional approval toward the industry.
Yesterday, the asset manager’s regulated financial product pulled $15.8 million in daily net inflows, a first since August 26, 2024. The net inflow of funds into IBIT was strong enough to push the wider US spot Bitcoin ETF market into green territory, with a combined net inflow of $12.8 million.
IBIT’s three weeks of no net daily inflows consisted of 11 days with zero flows, while two days – August 29, and September 9 – saw net daily outflows to $13.5 million and $9.1 million, respectively.
Looking at the performance of other spot Bitcoin ETFs, Grayscale’s GBTC product witnessed a net daily outflow of $20.8 million. At the same time, Fidelity’s FBTC, Franklin Templeton’s EZBC, and VanEck’s HODL experienced a net daily inflow of $5.1 million, $5 million, and $4.9 million, respectively.
According to data from cryptocurrency ETF tracker SoSoValue, BlackRock’s IBIT reigns supreme among US-based spot Bitcoin ETFs, with an enviable cumulative net inflow of $20.9 billion since the product’s inception early this year. FBTC follows this with $10.1 billion, Ark and 21Shares’ ARKB with $2.6 billion, and Bitwise’s BITB with $2.2 billion.
In contrast, GBTC has witnessed a cumulative net outflow of $20 billion. Analysts blame the product’s exorbitant fee of 1.5% as a major reason for GBTC’s performance to date. For comparison, IBIT has a fee of 0.21%.
Spot Ethereum ETFs Continue Their Lackluster Performance
While spot Bitcoin ETFs ended the day with a combined net inflow of $12.8 million, spot Ethereum ETFs experienced a combined net outflow of $9.4 million.
Akin to its Bitcoin ETF, Grayscale’s Ethereum ETF (ETHE) witnessed a net daily outflow of $13.8 million, followed by Bitwise’s ETHW with a $2.1 million net outflow. Only Grayscale’s mini Ethereum ETF (ETH) successfully attracted net inflows worth $2.3 million.
Since their approval in May 2024, Ethereum ETFs haven’t performed as well as Bitcoin ETFs when attracting significant inflows.
The tepid performance of Ethereum ETFs is reflected in the digital asset’s price as it continues to underperform against Bitcoin. Ethereum trades at $2,307 at press time, slightly up by 0.6% in the past 24 hours.
Featured image from Unsplash, Chart from Tradingview.com