BlackRock’s Spot Bitcoin ETF Attracts Net Inflows, How About Other ETFs?
For the first time in three weeks, BlackRock’s iShare Bitcoin Trust (IBIT) has registered a daily net inflow, propelling US spot Bitcoin exchange-traded funds (ETFs) to a combined net inflow of $12.8 million. This development, confirmed by data from Farside Investors, highlights the renewed investor interest in Bitcoin ETFs.
BlackRock’s Entry into the Bitcoin ETF Space
BlackRock ventured into the Bitcoin ETF arena when the US Securities and Exchange Commission (SEC) approved IBIT in January 2024. As the world’s largest asset manager, boasting a total asset-under-management (AUM) of $9 trillion, BlackRock’s entrance brought a wave of optimism among investors. This move not only added sophistication but also signified institutional approval of the burgeoning crypto ETF sector.
Recent Performance and Market Impact
On the previous day, BlackRock’s regulated financial product saw an influx of $15.8 million in daily net inflows, marking the first such occurrence since August 26, 2024. This substantial inflow was enough to push the entire US spot Bitcoin ETF market into positive territory, with a combined net inflow of $12.8 million.
IBIT had experienced three weeks without net daily inflows, consisting of 11 days with zero flows. Notably, August 29 and September 9 saw net daily outflows of $13.5 million and $9.1 million, respectively.
Comparative Analysis of Other Bitcoin ETFs
When examining other spot Bitcoin ETFs, Grayscale’s GBTC product reported a net daily outflow of $20.8 million. Conversely, Fidelity’s FBTC, Franklin Templeton’s EZBC, and VanEck’s HODL experienced net daily inflows of $5.1 million, $5 million, and $4.9 million, respectively.
According to data from cryptocurrency ETF tracker SoSoValue, BlackRock’s IBIT leads among US-based spot Bitcoin ETFs, with an impressive cumulative net inflow of $20.9 billion since its inception. FBTC follows with $10.1 billion, while Ark and 21Shares’ ARKB and Bitwise’s BITB have $2.6 billion and $2.2 billion, respectively. In stark contrast, GBTC has seen a cumulative net outflow of $20 billion, primarily due to its high fee of 1.5%, compared to IBIT’s fee of 0.21%.
Spot Ethereum ETFs Continue Their Lackluster Performance
While spot Bitcoin ETFs enjoyed a combined net inflow of $12.8 million, spot Ethereum ETFs faced a combined net outflow of $9.4 million. Grayscale’s Ethereum ETF (ETHE) saw a net daily outflow of $13.8 million, followed by Bitwise’s ETHW with a $2.1 million net outflow. Only Grayscale’s mini Ethereum ETF (ETH) managed to attract net inflows worth $2.3 million.
Ethereum ETFs’ Struggles
Since their approval in May 2024, Ethereum ETFs have struggled to attract significant inflows compared to their Bitcoin counterparts. This lackluster performance is mirrored in the digital asset’s price, which continues to underperform against Bitcoin. As of the latest data, Ethereum is trading at $2,307, marking a slight increase of 0.6% in the past 24 hours.
The tepid performance of Ethereum ETFs underscores the challenges faced by the digital asset in gaining traction among investors. As the market evolves, it remains to be seen whether Ethereum can close the gap with Bitcoin in terms of ETF inflows and overall market performance.
