- BlackRock, the world’s largest asset manager, has amassed US $18b worth of Bitcoin for investors in just six months of trading.
- The institution’s major spot Bitcoin ETF, IBIT, is by far the biggest on the market.
- Grayscale outflows have steaded in recent weeks, with only four days of net outflows recorded in the past fortnight.
- Meanwhile, options trading has come to Bitcoin ETFs, with two new futures-based funds offering the feature.
Bitcoin is fighting back against its worst month in 2024. After threatening to fall below US $50k (AU $74k) earlier this week, the coin has enjoyed a few days of relative stability around US $57k (AU $84k).
In the backdrop of sellers toing and froing is the continued strong performance of spot Bitcoin ETFs in the United States – and as expected, BlackRock’s fund continues to rule the roost.
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IBIT Sees Huge 48 Hours of Inflows as GBTC Outflows Settle
According to Farside, which tracks inflows and outflows of US Bitcoin ETFs, money is still bleeding from Grayscale’s fund (GBTC). Approximately US $150m (AU $221m) in cash is leaving GBTC daily. But as heavily as GBTC is losing investors, IBIT is picking them up at the same pace.
Since inception, BlackRock’s flagship Bitcoin fund has averaged daily inflows of US $145m (AU $214m). And even amid recent price struggles, the 8-9th of July saw US $300m (AU $443m) of inflows into IBIT alone.
Put it all together, and BlackRock is now managing a whopping US $18b (AU $26b) worth of BTC for customers in its first six months of trading. For context, the entire US ETF market pulled in US $413b (AU $610b) in the same timeframe. So, IBIT comprised 4.3% of all ETF inflows while only representing 0.03% of exchange-traded funds on the US market.
Options Trading Coming to Spot ETFs – But Impatient Investors Can Get Their Hit Now
The success of spot Bitcoin ETFs has spurred the community to start thinking about expansions to current crypto fund legislation. With so much institutional attention on products like IBIT, it’s only a matter of time before advanced trading options (such as… options trading…) are implemented into these major spot funds.
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However, those who can’t wait until a likely Q4 2024 approval can get their hit of options trading through two new futures-based ETFs – T-Rex’s BTCL and BTCZ. The new products, while not backed 1:1 by Bitcoin like spot ETFs, will allow investors to access flexible trading contracts.
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