iShares ETF by BlackRock Sees $788M Boost Amid Bitcoin Surge

Last Updated on March 6, 2024

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Key Takeaways:

  • The BlackRock iShares Bitcoin Trust (IBIT) achieved record inflows of $788 million on March 5, surpassing its previous high of $612.1 million on February 28.
  • Bitcoin’s market reached new heights with an all-time high of $69,324 and significant U.S. spot Bitcoin ETF investments totaling $648.3 million on the ATH day.
  • Grayscale Bitcoin Trust and Invesco Galaxy Bitcoin ETF experienced outflows, contrasting with the overall positive inflow trend.
  • IBIT led the day’s net inflows, with notable contributions from various other Bitcoin ETFs, enhancing the total inflow figure.
  • Despite Grayscale’s outflows, the Bitcoin ETF ecosystem has seen a total of $8.5 billion in net inflows, with IBIT and FBTC being the primary contributors.

On March 5, the iShares Bitcoin Trust (IBIT) managed by BlackRock saw an impressive influx of $788 million, shattering its previous record high inflow of $612.1 million set on February 28.

This significant capital injection into IBIT came as the Bitcoin market reached two pivotal achievements: setting a new all-time high (ATH) of $69,324 and witnessing a substantial increase in spot Bitcoin ETF investments in the U.S., with a total of $648.3 million pouring in on the day the ATH was achieved, according to Farside, an investment management firm.

bitcoin ETF flow table
Bitcoin ETF flow table. Source: Farside

Despite the general trend of inflows, the Grayscale Bitcoin Trust (GBTC) and the Invesco Galaxy Bitcoin ETF were outliers, registering net outflows of $332.5 million and $14.2 million, respectively, on the same day.

The day’s net inflows were predominantly driven by IBIT and were further bolstered by substantial contributions from other funds including the Fidelity Wise Origin Bitcoin Fund, the Bitwise Bitcoin ETF, the ARK 21Shares Bitcoin ETF, and others, each adding millions to the influx.

Interestingly, the Valkyrie Bitcoin ETF reported zero inflows on this notable day. To date, the Bitcoin ETF ecosystem has attracted net inflows totaling $8.5 billion, even after accounting for the consistent outflows from GBTC, which now total $9.6 billion.

Historical data highlights that IBIT and the Franklin Bitcoin ETF (FBTC) are the major contributors to the ecosystem’s inflows, with neither fund ever experiencing net outflows. As of March 5, IBIT and FBTC have contributed a staggering $9.16 billion and $5.3 billion, respectively, to the total inflows.

Meanwhile, GBTC has seen a 33% decrease in its Bitcoin holdings, dropping from 620,000 BTC at its ETF conversion to approximately 420,680 BTC. This reflects the dynamic changes and investor sentiment shifts within the ETF market.

Amidst this backdrop of heavy investment and a continuing bull run, the total trading volume for U.S.-based spot Bitcoin ETFs has surpassed $10 billion, underscoring the intense market activity and interest in these innovative financial products.

Eric Balchunas, a Bloomberg ETF analyst, described the trading volume figures as “bananas numbers for ETFs under [two months] old,” highlighting the unprecedented market enthusiasm for these new investment vehicles.

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Fleming Airunugba, a seasoned Web3 and crypto content expert, leverages his deep understanding of blockchain technology to bring the latest and most impactful news to the crypto community.

With a knack for engaging storytelling and strategic content creation, Fleming is dedicated to educating and inspiring his audience with insightful analysis on cryptocurrencies, NFTs, and the future of digital finance.

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