- Spot Bitcoin ETFs experienced record inflows of over USD $1bn in a single day, with BlackRock’s IBIT alone accounting for USD $848m.
- Senior Bloomberg ETF analyst Eric Balchunas believes in the sustainability of all ten Bitcoin ETFs.
- The unprecedented interest in Bitcoin ETFs suggests these funds are on a solid path to rival Gold ETFs in total assets held.
More records are being shattered in the Spot Bitcoin ETF world—almost daily now. The funds saw over USD $1bn (AUD $1.51bn) in inflows Wednesday US Time, with BlackRock’s IBIT alone accounting for USD $848m (AUD $1.28bn).
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The 215,625 Bitcoin held by IBIT, valued at approximately USD $15.7bn (AUD $23.7bn), positions the iShares fund as one of the fastest-growing ETFs with significant inflows this year and propels it into the Top 100 ETFs by size.
Can Funds Survive This Pace?
The question then is, is this all sustainable? Senior Bloomberg ETF analyst Eric Balchunas thinks so.
His confidence in the survival of all ten Bitcoin ETFs stems from several key observations and underlying factors related to the current state and dynamics of the ETF market, particularly for those tied to cryptocurrencies like Bitcoin.
Firstly, even the Bitcoin ETF with the least assets under management (AUM), WisdomTree’s BTCW, possesses a healthy USD $74m (AUD $111.8m) in assets. This figure, while seemingly modest in the grand landscape of investment funds, is actually quite robust for a niche product in a highly volatile and emerging sector like crypto.
Secondly, when placed in the context of the broader ETF market, BTCW’s AUM ranks it 16th out of 108 ETFs launched in 2024, positioning it in the top 15% of all new ETFs. This ranking is indicative of a strong market interest and investor confidence—not just in BTCW—but in Bitcoin ETFs as a whole.
Out of the 108 ETFs launched in 2024 so far it ranks 16th. (top 15%). That’s how insane all this is.
Eric Balchunas The crazy and explosive growth combined with the innovative structures of ETFs, offers investors a way to gain exposure to this sector without the complexities of direct crypto ownership and management.
All this suggests a resilient demand and a solid foundation for the survival of all ten Bitcoin ETFs.
Related: MicroStrategy’s Saylor Challenges BlackRock, Vows to Increase BTC Holdings
According to the chart below by Bitcoin Archive, the ETFs are also well on their way to flip Gold ETFs for total assets held. Going by their calculations the Spot Bitcoin ETFs with their USD $58bn (AUD $87.7bn) are 58% on the way to overtake the AUM in gold of USD $98bn (AUD $148.2bn)—not a bad achievement for just 8 weeks of trading.
Source:
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