BlackRock Bitcoin ETF Inflow Breaks Records with $875M Boost – Is This a Turning Point?

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ETFs are rolling once gain, analysts see it as a fresh start after a recent dip. BlackRock’s iShares Bitcoin Trust ETF (IBIT) achieved an unprecedented milestone, drawing a staggering $875 million in fresh investments on Wednesday.

This single-day inflow, as reported by SoSoValue, marks the largest ever recorded for the product, signaling robust investor interest amid Bitcoin’s recent rally. With these massive inflows, IBIT’s total net assets have soared past $30.8 billion, setting a new record for the quickest accumulation of assets among ETFs. BlackRock achieved this in only 293 days, surpassing the prior record set by the JPMorgan Equity Premium Income ETF (JEPI), which took 1,272 days to reach the same milestone.

Despite Bitcoin’s slight dip of 1% to $72,320 on Thursday morning in London, this influx of capital suggests strong momentum in the market, particularly for Bitcoin-related ETFs. BlackRock’s IBIT took in more in a single day than all but seven of the 590 ETFs launched this year have amassed throughout 2024.

The surge in IBIT’s asset size highlights a growing confidence in institutional Bitcoin products, especially as other major digital assets also saw modest losses in the broader crypto market.

Comparing Other Crypto ETFs

While BlackRock’s IBIT is breaking records, other crypto-focused ETFs saw comparatively lower inflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) attracted $12.57 million on the same day, lifting its net assets to $13.5 billion.

However, Ethereum-related ETFs continue to face tepid interest. BlackRock’s iShares Ethereum Trust ETF (ETHA) recorded no inflows on Wednesday, while Fidelity’s Ethereum Fund (FETH) saw a modest $5.6 million in new investments, barely keeping it in positive territory.

The stark contrast between Bitcoin and Ethereum ETF demand underlines Bitcoin’s stronger position as an institutional asset and suggests investor preference for BTC-focused products. As IBIT’s record inflows fuel excitement for Bitcoin’s future, Ethereum’s subdued performance hints that it may take more time and broader market interest for Ether-focused ETFs to achieve similar traction.