The iShares Bitcoin Trust (IBIT) has become one of the most popular Bitcoin ETFs. It has over 270.000 BTC in assets under management, valued at over $17.000 billion.
Investor demand for Bitcoin has been moderating. However, BlackRock’s spot ETF remains in the spotlight, recording positive inflows for 66 consecutive days, according to data from SoSo Value.
The platform shows that IBIT attracted $73,4 million during trading hours on Monday, while the Grayscale Bitcoin Trust (GBTC), which remains the largest Bitcoin ETF by holdings, continues the streak of outflows from the fund.
Amidst price fluctuations in the crypto market and investor uncertainty, IBIT continues to attract capital and record positive inflows.
Source: SoSo Value
Investors appear undecided, says CoinShares
Of the 11 Bitcoin ETFs listed on US exchanges, IBIT is the only one that recorded positive inflows earlier this week.
Investors appear to be undecided by the stagnation of cryptocurrency prices on the market, which has led to outflows from crypto-asset investment funds in general over the past week.
According to weekly report Regarding the inflows into CoinShares' crypto-asset-based investment funds, the firm highlighted that the uncertainty of cryptocurrency investors caused the exit of $126 million dollars from crypto investment funds. Specifically, Bitcoin investment products registered outflows of less than $110 million dollars. However, the most affected continued to be those based on Ethereum, which registered fund outflows for the fifth consecutive week, according to the report.
The “halving” of Grayscale Investments
Since GBTC became an exchange-traded fund, it has lost half of its assets under management.
GBTC, which was a private Bitcoin trust, became a spot ETF on January 10, after receiving approval from the U.S. Securities and Exchange Commission (SEC). The fund began trading on the New York Stock Exchange (NYSE) on January 11 and has since seen the 307.540 BTC output, approximately.
In contrast, IBIT has remained the top cryptocurrency investment vehicle, holding 270.976 BTC in assets under management, which are valued at around $17.083 billion USD, at the time of writing.
Source: CoinGlass
The massive outflow of funds that GBTC has experienced since its conversion to a spot ETF has been driven primarily by the high fees it offers compared to its competitors in the market. Currently, Grayscale charges a 1,5% honorary fee, compared to 0,25% for BlackRock, 0,25% for Fidelity, and 0,21% for Ark Invest, among others, which has driven the exit of its investors and caused the significant decrease in their Bitcoin holdings.
Institutional investors flooded the crypto market
On the other hand, despite the uncertainty and market correction, the filing of Form 13F by fund managers offering a Bitcoin spot ETF with the SEC revealed the significant involvement of Wall Street firms in the crypto market.
Form 13F is required for fund managers with more than $100 million under management. It is a quarterly report in which companies disclose their equity holdings, investor participation and other matters of interest to the federal agency and the market.
The 13F filings, released last week, exposed the involvement of firms such as Park Avenue Securities, Inscription Capital, American National Bank, and Wedmont Private Capital in the Bitcoin market through spot ETFs. Although their allocations to BTC ETFs are moderate, they represent the recognition and importance of Bitcoin as an investment asset.
Continue reading: Major Bitcoin miners are optimistic about the upcoming halving
