Key Points
- BlackRock’s IBIT ETF continues to attract significant inflows despite Bitcoin’s recent decline.
- Institutional demand for crypto investment products is still on the rise, despite the varied performances of Bitcoin ETFs.
Despite the recent drop in the price of Bitcoin, BlackRock’s IBIT exchange-traded fund (ETF) has continued to see significant daily inflows.
Earlier in the week, Bitcoin’s price dropped to $67,500, down from a high of $69,000.
IBIT ETF Attracts Significant Inflows
On October 24, institutional investors poured over $165 million into IBIT, making it 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, surpassing rivals such as Grayscale’s GBTC and Fidelity’s FBTC.
On the same day, 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.
Grayscale’s GBTC Experiences Outflows
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.
Despite this, GBTC remains a strong revenue generator, outperforming competitors like BlackRock’s IBIT.
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.
Despite the varied performances, institutional demand for crypto investment products is still on the rise.
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 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.
