BlackRock’s Bitcoin ETF Hits Record Inflows at Crypto Peaks: A New Era of Digital Asset Investment

On the day Bitcoin’s flagship token soared to an unprecedented peak before sliding down by as much as 10%, investors funneled an unparalleled sum into BlackRock’s Bitcoin ETF, showcasing a keen interest in the crypto sector’s top asset. The surge in Bitcoin’s value catalyzed a record-breaking $788 million in net deposits into the iShares Bitcoin ETF (IBIT) managed by BlackRock on March 5, establishing a new benchmark for daily capital influx into this investment channel as market participants appeared to leverage a temporary price decline.

SoSoValue reports indicate that the IBIT ETF has amassed over $9 billion in total net inflows and oversees nearly $12 billion in assets under management (AUM). This considerable sum of managed assets is bolstered by the acquisition of more than 183,000 Bitcoin (BTC) by the investment giant since January 11, marking the commencement of trading activities. This period witnessed BlackRock’s most substantial single-day Bitcoin acquisition, with the procurement of approximately 12,600 Bitcoin, surpassing its previous record on February 28, when it purchased over 10,140 BTC for its IBIT fund.

In alignment with expanding its presence in the Bitcoin ETF arena, BlackRock disclosed plans through a March 4 U.S. SEC filing to extend its investments into additional BTC ETFs via its Strategic Income Opportunities Fund, as reported by crypto.news. This announcement arrived shortly after unveiling its Bitcoin ETF aspirations in Brazil, emphasizing the firm’s bullish stance on cryptocurrency investment vehicles.

Contrastingly, as the IBIT ETF recorded historic inflows, Grayscale’s GBTC witnessed continued outflows, with the converted ETF seeing a $332 million reduction. Despite this, the collective net inflows into all 10 spot BTC ETFs reached $648 million, even as more than $9 billion was withdrawn from GBTC. The rising interest in BTC ETFs among other financial institutions is notable, with the combined AUM of these products, excluding Grayscale’s GBTC, surpassing $20 billion. This reflects nearly 4% of the current BTC supply, according to Dune Analytics.

Leading banks such as Bank of America’s Merrill Lynch, Citi Bank, UBS, and Wells Fargo have responded to client demand by allowing select customers to invest in spot BTC ETFs, despite their initial reservations post-launch. This shift underscores a growing acceptance and enthusiasm for Bitcoin ETFs within the traditional financial sector, highlighting a significant trend towards embracing digital asset investments.

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