Surge in Bitcoin ETF popularity marked by BlackRock’s IBIT and global interest

The inclination towards the Bitcoin ETF space is taking place in unrestricted leaps and bounds, the focus being on BlackRock’s IBIT inflows—simply astounding, no less. Not only does it help further BlackRock’s AP network, but it also involves China-based funding businesses scouring spot Bitcoin ETFs via their Hong Kong affiliates. 

As per the data collected from Farside Investors, IBIT went through a substantial net inflow amounting to $308.8 million. This creates a total net inflow of an inspiring $14.769 billion. This invariably signals the largest total inflow where IBIT is concerned, following the 27th of March, 2024. This speaks volumes regarding the sheer demand for Bitcoin via regulated investment procedures. 

BlackRock is also focusing on improving the liquidity and overall effectiveness of its Bitcoin ETF by supplementing five APs involving prime Wall Street banks like Goldman Sachs, Citigroup, and UBS. Citadel Securities and ABN AMRO are also added to that. This brings the collective APs for IBIT to nine and creates a more competitive scenario regarding the fund’s shares. 

The positive aura around Bitcoin ETFs is evident because of the results pertaining to four continuous days of net inflows throughout multiple funds. Fidelity’s FBTC also went through a robust $83 million net inflow, a significant part of the complete net inflow amounting to $7.957 billion. 

Compared to that, Grayscale’s GBTC experienced high outflows to $198.9 million, the biggest ever since the 1st of April. This brought the total outflow to $15.505 billion.  

Incidentally, the inclination towards Bitcoin ETFs does not only revolve around the US market. It is being observed that mainland-oriented equity funds are gaining traction by connecting the Bitcoin ETF space via their Hong Kong affiliates. As per the rounds of speculations, multiple funding businesses in China have forwarded their applications for introducing spot Bitcoin ETFs. 

Among them is the Hong Kong wing of Harvest Fund Management, which anticipates receiving consent from the Securities & Futures Commission (SFC). It belongs to Hong Kong China Asset Management’s Hong Kong branch. They have inked a deal with Hong Kong’s certified crypto exchange, HashKey, to further and expand Web3 activities within the asset management arena. 

The association mentions the increasing inclination towards combining conventional finance with the crypto ecosystem. Under this scenario, the growing contribution of the big-time financial institutions and the spreading APs signify an evolving market and increased adoption of Bitcoin as a viable cryptocurrency, only to grow further.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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