Bitcoin ETFs in the US See Inflows of $1.67 Billion Last Week
Last week, Bitcoin exchange-traded funds (ETFs) in the United States recorded an inflow of $1.67 billion, a slight increase from the previous week's $1.63 billion, indicating sustained interest from institutional investors.
Data from SoSoValue shows that BlackRock's iShares Bitcoin Trust (IBIT) led with nearly $2 billion in inflows for the week. Despite a pause in inflows on Friday, IBIT achieved over $126 million in daily investments on Thursday, reflecting investor confidence in BlackRock’s fund.
BlackRock's Dominance in the Market
During the week, IBIT emerged as one of the top-performing Bitcoin ETFs, with a total trading value of $19.35 billion. The fund controls approximately 2% of total Bitcoin shares and has net assets valued at $42.89 billion, highlighting the significant effect of Bitcoin ETFs on BlackRock’s portfolio.
The success of Bitcoin ETFs has positively influenced BlackRock’s financial performance this year. The latest earnings report showed quarterly earnings of $11.46 per share, exceeding the Zacks Consensus Estimate of $10.42 per share, marking a 9.98% surprise. This follows a prior quarter where projected earnings of $9.96 per share were surpassed by actual earnings of $10.36, resulting in a 4.02% surprise.
The strong inflows and performance of Bitcoin ETFs have altered the perspective of BlackRock CEO Larry Fink. Previously critical of Bitcoin, Fink now recognizes it as a valuable investment class. He stated, “We believe bitcoin is an asset class in itself,” emphasizing its legitimacy while downplaying regulatory concerns and focusing on the potential for market expansion through increased acceptance and liquidity.
With BlackRock’s Bitcoin ETF accumulating $23 billion in inflows, Fink expressed optimism about ongoing growth and the transformative potential of blockchain technology in global finance.
Bitcoin’s All-Time High Fuels Market Sentiment
Bitcoin's surge to a new all-time high of $93,000 last week significantly enhanced market sentiment. This milestone increased investor confidence, contributing to the $1.67 billion inflow into Bitcoin ETFs. The rise signals growing mainstream adoption and demand for Bitcoin through regulated investment products.
The positive sentiment surrounding Bitcoin and its ETFs is expected to persist, driven by increasing interest and the possibility of further ETF approvals. This capital influx and focus on Bitcoin ETFs solidify its role in modern financial portfolios, establishing it as a key element of institutional investment strategies.