Source: DALL E
BlackRock's recently launched iShares Bitcoin Trust (IBIT), a spot Bitcoin ETF, has just reached a new milestone.
As of Friday, it holds just over 70,000 BTC tokens, worth just over $3 billion at the current Bitcoin price of around $43,200.
🚨 JUST IN: BlackRock now holds 70,005 $BTC worth over $2.98 billion for its spot #Bitcoin ETF.
They have accumulated another 3,805 #BTC in the last 24 hours! pic.twitter.com/Wv60brFuHt
— Josh (@CryptoWorldJosh) February 2, 2024
According to crypto analyst @CryptoWorldJosh, the ETF has accumulated another 3,805 in the last 24 hours.
Since its launch on January 11, BlackRock's Spot Bitcoin ETF has seen strong net inflows.
In fact, BlackRock's spot Bitcoin ETF has so far failed to attract at least $100 million in net inflows in just two trading days, according to ETF flow tracking website ETF.com.
BlackRock's Spot Bitcoin ETF is not the only success story
BlackRock’s new spot Bitcoin ETF isn’t the only success story of the last month.
Since the SEC greenlighted 11 spot Bitcoin ETF products, others have also performed well.
Fidelity's spot Bitcoin ETF (FBTC) had attracted nearly $2.5 billion in net inflows as of Thursday, according to ETF.com.
Meanwhile, newly launched spot Bitcoin ETFs from Ark 21Shares, Bitwise, Invesco/Galaxy, VanEck, Valkyrie, Franklin and WisdomTree have collectively attracted nearly $2 billion in assets under management (AUM), according to Blockworks ETF tracker.
Including Grayscale's Bitcoin Trust (GBTC), spot Bitcoin ETFs currently have an AUM of around $28.
Inflows now outweigh GBTC outflows
GBTC converted from a fiduciary product to a spot ETF in January but saw around $6.1 billion in outflows.
Traders had purchased GBTC in large quantities throughout 2023 when it was trading at a large discount to net asset value (NAV).
After switching to a spot ETF, these traders were finally able to redeem their GBTC at net asset value.
Profit-taking on this trade was therefore a big driver of GBTC outflows.
GBTC's high fees compared to its competitors could be another factor driving rotation into newly launched spot Bitcoin ETF products.
According to ETF.com, GBTC outflows have fallen to around $200 million per day this week.
This means that inflows into the other newly launched ETFs are currently exceeding GBTC outflows, which is giving the Bitcoin market new demand.
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