- Despite an initial US$494 million net outflows, US Spot Bitcoin ETFs saw strong recovery with daily inflows reaching nearly US$1 billion on Friday, demonstrating sustained institutional interest.
- The 12 Bitcoin ETF funds now collectively hold over 1.14 million Bitcoin, with BlackRock’s IBIT dominating the market by controlling 2.665% of all available BTC.
- While BlackRock’s digital assets head Robert Mitchnick remains optimistic about early Bitcoin adoption, JPMorgan’s Jamie Dimon maintains scepticism, highlighting the divided perspectives among financial institutions.
As everyone was busy with Donald Trump’s upcoming inauguration, Donald Trump’s Crypto Ball on Friday, or with Donald Trump’s memecoin, some investors have been ignoring all that noise, quietly buying the US Spot Bitcoin exchange-traded funds (ETFs).
Week Sees Billions in Net Inflows
While last week started with a US$494 million (AU$796.8 million) net outflow, the rest of the week fared much better, bringing in a whopping US$2.3 billion (AU$3.7 billion) over three days.
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Wednesday, the ETFs had a combined net inflow of US$755.1 million (AU$1.2 billion), Thursday that number slightly dropped to US$626.1 million (AU$1.01 billion), while it was up again on Friday with US$975.1 million (AU$1.57 billion).
In total the US funds finished the week with net gains across the board of US$1.86 billion (AU$3 billion).
The 12 funds now hold 1,143,353 Bitcoin which equals 5.445% of all 21 million BTC.
The largest Bitcoin ETF, BlackRock’s iShares Bitcoin Trust (IBIT), which accounts for 2.665% of all BTC, holds almost half of the 12 ETF’s combined stash – 559,564 Bitcoin.
IBIT managed to attract net inflows of US$745.7 million (AU$1.2 billion) last week, closely followed by Fidelity’s FBTC with US$680.2 million (AU$1.09 billion).
The robust commitment to buying these ETFs is fueled by growing institutional interest and a greater openness among governments to consider adding BTC as a reserve asset. Just recently, US states Wyoming, Texas, North Dakota and North Hampshire have all started exploring either an investment in Bitcoin directly or in crypto in general.
Additionally, Italy’s largest bank, Intesa Sanpaolo, has bought Bitcoin after years of opposition to it. No surprise then that these funds have been vital in sustaining the Bitcoin price rally in 2024.
Still Early Days in Bitcoin Adoption, Says BlackRock Manager
BlackRock’s head of digital assets, Robert Mitchnick, said in a recent interview with Bloomberg that the year has been an “incredible” one for the ETFs and that it’s still only the start of things.
We’re still quite early days in terms of the adoption of the wealth advisory and the institutional segment.
Robert Mitchnick, BlackRockAnd you know that it’s still early when the heads of the world’s largest financial institutions can’t agree. Because while BlackRock is bullish on Bitcoin, rival JPMorgan Chase and its CEO Jamie Dimon continue with their anti-Bitcoin stance.
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Bitcoin itself lacks intrinsic value. It is heavily used in activities such as money laundering, ransomware, and human trafficking, which makes me uncomfortable with it.
Jamie Dimon, JPMorgan CEODimon had called BTC a “pet rock” before, although he does see merit in blockchains in general, saying that “they’ll have uses”.
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