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BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) has seen over $1 billion in inflows during this past week, which contributed to a 10% increase in the leading cryptocurrency over the last seven days.
What Occurred: Data from SoSo Value indicates that U.S. spot bitcoin ETFs attracted $470 million on just Thursday. BlackRock’s IBIT led the charge, acquiring $309 million, resulting in a weekly total of $1.07 billion.
Don’t Overlook:
In total, spot bitcoin ETFs reported considerable inflows, with 12 funds collectively gathering more than $1.85 billion this week. Ark and 21Shares’ (BATS:ARKB) secured over $100 million in inflows. Grayscale’s (OTC:GBTC) saw $45.70 million, while Fidelity’s (BATS:FBTC) attracted $11.69 million.
As noted by crypto analyst Rachael Lucas in The Block, this upward trend can be attributed to favorable macroeconomic conditions—investors often turn to alternative assets when central banks lower interest rates.
On Thursday, trading volume for bitcoin ETFs was around $1.47 billion, a slight decrease from the day before. Since January, the cumulative net inflows have hit $20.66 billion, a remarkable milestone described by Bloomberg’s Eric Balchunas as “the most significant metric in the ETF universe.”
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Spot Ethereum (CRYPTO: ETH) ETFs also recorded encouraging inflows, with $48.41 million on Thursday. Fidelity’s (BATS:FETH) led the way with $31.12 million, followed by BlackRock’s (NASDAQ:ETHA) at $23.56 million. However, Grayscale’s (OTC:ETHE) saw outflows amounting to $15.74 million.
Why It Matters: The influx of investments into Bitcoin ETFs coincides with the ongoing expansion of the cryptocurrency sector, as underscored by essential metrics.
A recent report by Coinbase and Glassnode highlights the maturation of the crypto market, pointing out that successful spot ETFs and rising trading volumes are pivotal growth factors. Additionally, a separate report from venture capital firm a16z indicates that monthly active addresses have reached all-time highs, increasing threefold since late 2023.
The Securities and Exchange Commission approved Bitcoin ETFs in January of this year, following a controversial hack involving the SEC’s account.
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This article, “BlackRock’s Bitcoin ETF Attracts $1B This Week, Fidelity Tops Ethereum ETFs With $31M,” originally appeared on Benzinga.com
