BlackRock’s Bitcoin exchange-traded fund (ETF) dominated the market on May 21, accounting for 95% of the total inflows into US spot Bitcoin ETFs. The iShares Bitcoin Trust (IBIT) by BlackRock received a significant inflow of $290 million, contributing to a combined net inflow of $305.7 million across all eleven ETF issuers.
This surge in inflows marks a turning point for BlackRock’s ETF, which had experienced zero or minimal inflows over the past six weeks. In fact, the latest inflow is greater than the total inflow received in the past 21 trading days combined. The overall trend has seen over $1 billion flowing back into spot Bitcoin ETFs in the last four trading days, amidst a volatile Bitcoin rally.
With the latest data, BlackRock’s fund has now accumulated $16 billion in inflows since its launch, as reported by Farside Investors. However, the official website displays assets under management (AUM) of $19 billion for the product. This puts BlackRock’s IBIT in close competition with industry leader Grayscale, whose Grayscale Bitcoin Trust (GBTC) ETF has $20 billion in AUM.
In contrast to BlackRock’s success, GBTC experienced no outflows on May 21, marking five consecutive trading days without a net outflow. The fund has even seen inflows of $72.5 million in the past five days, reversing a four-month trend of consistent outflows. However, there were some outflows on May 21 for other ETFs, with the VanEck Bitcoin Trust ETF experiencing $5.9 million in outflows and the Bitwise Bitcoin ETF seeing $4.2 million in outflows. The Fidelity Wise Origin Bitcoin Fund had minor inflows of $25.8 million, while the remaining funds had no significant activity.
The recent enthusiasm for Bitcoin ETFs can be attributed to the upward movement of BTC prices over the past week, with the asset gaining 12%. BTC reached a six-week high of $71,600 on May 21 but dipped below the $70,000 level during early Asian trading on May 22. Currently, it is trading at $69,444.
Additionally, the possibility of the US Securities and Exchange Commission approving spot Ether ETFs has also boosted the crypto markets since May 20.
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