BlackRock's IBIT Sees Another Day of Positive Inflows of $165M amid Bitcoin Decline | Coinspeaker

BlackRock’s IBIT Sees Another Day of Positive Inflows of $165M amid Bitcoin Decline

Chimamanda U. Martha By Chimamanda U. Martha Julia Sakovich Edited by Julia Sakovich Updated 3 min read
BlackRock’s IBIT Sees Another Day of Positive Inflows of $165M amid Bitcoin Decline
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BlackRock’s Bitcoin ETF continues to record significant daily inflows despite the fluctuating market.

Key Notes

  • Institutional investors added $165 million to BlackRock’s IBIT ETF in a single day, showing robust interest even as Bitcoin values fluctuate.
  • BlackRock’s IBIT outpaced other Bitcoin ETFs in daily net inflows, contributing nearly 90% of all US-listed Bitcoin ETF investments on October 24.
  • Only Grayscale's GBTC recorded an outflow of more than $7 million, continuing its trend of negative outflows in weeks.

BlackRock’s IBIT exchange-traded fund (ETF) has continued to attract significant daily inflows despite Bitcoin’s BTC $68 012 24h volatility: 1.6% Market cap: $1.34 T Vol. 24h: $45.08 B recent decline to $67,500, down from a high of $69,000 earlier in the week.

On October 24, institutional investors funneled over $165 million into IBIT, positioning it as a preferred crypto product amidst a fluctuating market. Data from SoSoValue reveals that the fund now has a cumulative net inflow of $23.69 billion, outpacing rivals such as Grayscale’s GBTC and Fidelity’s FBTC.

Grayscale’s GBTC Records Another Daily Outflow

On October 24, total inflows into all US-listed Bitcoin ETFs stood at just under $200 million, with BlackRock‘s IBIT accounting for almost 90% of this figure.

Bitwise’s Bitcoin ETF (BITB) was the second most popular choice, attracting $29.63 million. The two investment products were the only spot Bitcoin ETFs that recorded any inflows from institutional investors. Apart from Grayscale’s Bitcoin Trust (GBTC), the remaining nine ETFs were on the fence, with neither inflow nor outflows recorded.

Data from SoSoValue indicates that GBTC was the only Bitcoin ETF experiencing outflows as of October 24, with investors withdrawing over $7 million in a single day. The fund’s daily net inflow currently stands at $20.11 billion, having faced significant outflows throughout October.

Despite this, GBTC remains a strong revenue generator, outperforming competitors like BlackRock’s IBIT. According to reports, Grayscale‘s Bitcoin Trust has around $14 billion in assets under management (AUM) and produces approximately $205 million in annual revenue due to its 1.5% fee rate.

In comparison, BlackRock’s IBIT manages $17 billion but earns $42.5 million annually, resulting from a lower 0.25% fee. This fee difference makes GBTC five times more profitable than IBIT, despite recent investor shifts to lower-cost ETF options.

Bitcoin ETFs See Massive Institutional Adoption

Despite the varied performances, institutional demand for crypto investment products is still on the rise. Earlier this week, Eric Balchunas, a senior ETF analyst at Bloomberg, revealed that European investors have injected more than $105 billion into the US-listed Bitcoin ETFs.

A separate report by Binance, the leading global crypto exchange with over 200 million users worldwide, shows that institutional interest in the product surpassed that of early gold ETFs during its first year of launch.

Currently, more than 120 financial institutions worldwide are invested in the product, compared to Gold ETFs, which attracted only 95 investors within the same period.

In addition to the massive institutional adoption, Bitcoin ETFs have reached several key milestones in their short time on the market. On October 17, Balchunas shared on X that the products crossed $20 billion in total net inflows, which the analyst described as “the most difficult metric to grow” for ETFs. He further disclosed that the threshold took over five years for Gold-based ETFs to achieve.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Chimamanda U. Martha

Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.

Chimamanda U. Martha on X

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