BlackRock's Bitcoin ETF has hit a big milestone this week, reaching over $1 billion in inflows. This surge shows that investor interest in cryptocurrency is growing.
Specifically, the iShares Bitcoin Trust (NASDAQ: IBIT) attracted more than $1 billion just this week. Thanks to this, Bitcoin saw a nice 10% gain over the last seven days.
What’s happening? According to data from SoSo Value, spot Bitcoin ETFs in the U.S. pulled in $470 million on Thursday alone. BlackRock’s IBIT was the leader, bringing in $309 million, which helped total the week’s inflow at $1.07 billion.
Overall, spot Bitcoin ETFs have seen impressive inflows. Twelve funds combined have gathered over $1.85 billion this week. For instance, Ark and 21Shares’ ARKB saw over $100 million in inflows. Grayscale’s GBTC recorded $45.70 million, while Fidelity’s FBTC had $11.69 million.
Crypto analyst Rachael Lucas, as reported by The Block, points out that favorable economic conditions are driving this trend. When central banks lower interest rates, investors often look for alternative assets.
On Thursday, the trading volume for Bitcoin ETFs was around $1.47 billion, slightly down from the day before. Since January, total net inflows have reached $20.66 billion. Bloomberg’s Eric Balchunas calls this “the most important metric in the ETF world.”
Spot Ethereum (ETH/USD) ETFs also showed positive inflows, totaling $48.41 million on Thursday. Fidelity’s FETH led with $31.12 million, followed by BlackRock’s ETHA at $23.56 million. However, Grayscale’s ETHE faced a $15.74 million outflow.
This increase in Bitcoin ETF inflows is significant. The cryptocurrency sector is expanding based on key metrics. A recent report from Coinbase and Glassnode highlights this maturation, noting that successful spot ETFs and rising trading volumes are key growth factors. Additionally, venture capital firm a16z reports that monthly active addresses have tripled since the end of 2023.
The Securities and Exchange Commission approved Bitcoin ETFs in January this year, following a controversial incident involving a hack of their account.
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