BlackRock has maintained its lead in the spot Bitcoin ETF market as its product IBIT raked in over 90% of inflows for October 24
Amid Bitcoin’s dip from $69,000 to $67,500, BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), is growing its TVL. October 24 marked a big day for IBIT, as over $165 million flooded in from investors. This market resilience shows the pull of crypto ETFs to institutional investors. It also signals a profound shift in how traditional finance is approaching crypto.
Institutional Interest Peaks as BlackRock Leads the Pack
BlackRock’s IBIT is not just weathering the market’s ups and downs but thriving. Institutional investors added over $165 million on October 24, making up nearly 90% of total Bitcoin ETF inflows for the day.
IBIT now boasts of $23.69 billion in cumulative inflows. This achievement positions the Bitcoin ETF ahead of competitors like Grayscale’s GBTC and Fidelity’s FBTC,
Only two spot Bitcoin ETFs in the US saw positive inflow on October 24. These include BlackRock’s IBIT and Bitwise’s BITB, which brought in $29.63 million. Grayscale’s GBTC, by contrast, saw a total outflow of $7 million, marking it as the only ETF in the red that day. The remaining ETFs showed neither inflows nor outflows, leaving IBIT and BITB as the dominant funds.
Despite Grayscale’s GBTC significant outflows, it remains highly profitable. With $14 billion in assets and a 1.5% fee, GBTC earns $205 million annually. This is far above IBIT’s $42.5 million from a lower 0.25% fee. This fee difference makes GBTC five times more profitable, even as investors shift to cheaper issuers.
A Booming Market for Bitcoin ETF
Bitcoin ETFs are gaining global attention. European investors pumped in over $105 billion in U.S.-listed Bitcoin ETFs recently. This record has outpaced early gold ETFs. With over 120 financial institutions onboard, Bitcoin ETFs surpass Gold ETFs, with only 95 investors in their first year.
As of October 17, Bitcoin ETFs had crossed $20 billion in total net inflows, a metric that took gold-based ETFs over five years to reach. These achievements show that Bitcoin ETFs are not just a trend; they reflect growing institutional confidence in crypto.
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