With the latest registered inflow, the offering’s total net flow in the last 12 trading sessions has nearly reached $2 billion.
Investment asset management firm BlackRock Inc (NYSE: BLK) may just have had one of its best trading days. On Monday, the BlackRock iShares Bitcoin Trust (IBIT) recorded a total of $523 million in inflows, marking one of its largest inflows since it launched in January. This brings the Bitcoin ETF’s Assets Under Management (AUM) to almost $20 billion.
🚨 BlackRock buys 7759 BTC ($523m)!!
HUGE 🚀 pic.twitter.com/RgFXSSjOt0
— Julian Fahrer (@Julian__Fahrer) July 22, 2024
BlackRock’s IBIT Outshine Other Bitcoin ETFs
Generally, IBIT has proven to be one of, if not the most successful spot Bitcoin ETF with its constant huge inflows. With the latest registered inflow, the offering’s total net flow in the last 12 trading sessions has nearly reached $2 billion. It is obvious that the BlackRock spot Bitcoin ETF has contributed extensively to the total inflows of the United States Bitcoin ETFs.
The success recorded by this new product in the US is a reflection of the interest and the increasing confidence of institutional investors in the market in addition to retail participation. Other spot Bitcoin ETFs may have fallen out of investors’ favor. Current market data points that they recorded a net inflow of only $6.9 million, barely 2% of IBIT’s inflow.
BlackRock’s IBIT saw almost $1 billion in trading volumes, a trend it is recording for the third time in the past week. So far, the Bitcoin product has amassed more than 325,000 BTC which is worth more than $22.5 billion.
Fidelity Investment’s FBTC ranks in second place to BlackRock’s IBIT, with an AUM of $12.19 billion. The surge in inflows and trading volume has rippled to the IBIT share, causing the price to jump by 20% in the past two weeks.
BlackRock AUM Tops $10T
The company behind the IBIT Bitcoin ETF has also experienced the broader effect of having a prosperous crypto product. A week ago, BlackRock disclosed that its AUM had reached $10 trillion, a 13% rise from the year-earlier period. Its Earnings Per Share (EPS) also moved from $9.06 to $9.99 while the company’s revenue increased 7.7% to $4.8 billion.
While Bitcoin has seen improvements in terms of its price, it is worth noting that it is yet to take out key price resistance as expected. At the time of this writing, BTC price was trading for $66,592.72, corresponding with a 1.01% slump in the last 24 hours. The last time IBIT recorded such a level of net inflows, which was in March, Bitcoin hit a new all-time-high (ATH) of over $73,000.
BlackRock is also one of the firms pushing to list spot Ethereum ETF. With the SEC’s affirmation of the latest offering, it is expected that the offering will perform excellently, taking its cue from spot Bitcoin ETFs.
It might also probably take BlackRock’s AUM to a higher level within the next six months.
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