Demand for Bitcoin products on Wall Street soared last week, with BlackRock’s Spot Bitcoin exchange-traded fund taking in $1.1 billion in new funds.
Bitcoin (BTC) has become a major focus for US wealth management giant BlackRock as its Spot Bitcoin ETF outperformed several traditional financial products.
Ten months after the Spot Bitcoin ETF debuted in mid-January, investors injected $26 billion into BlackRock’s IBIT. Last week’s inflow marks another milestone for BlackRock’s Bitcoin ETF, as the fund ranks in the top 2% of all U.S. ETFs.
BlackRock’s IBIT accounted for half of the $2.2 billion in inflows recorded by U.S. Bitcoin Spot ETFs from October 14th to October 18th. The $1.1 billion inflow made IBIT the third-highest inflow year-to-date. It was also IBIT’s best week since March, confirming its status as the fastest-growing ETF on Wall Street and in financial history.
The success of the US Spot Bitcoin ETF has consistently attracted media attention and sparked policy debates surrounding Bitcoin as an asset. Similar discussions are being made about the Ethereum (ETH) Spot Ether ETF, but the milestones are modest compared to the Bitcoin ETF.
BlackRock’s IBIT alone is overshadowed by the $7.35 billion deposited into the entire Spot Ethereum ETF array. However, Bitwise CIO Matt Hougan believes the Ethereum ETF will ultimately be successful.
Hogan said issuers may have brought Ethereum ETFs to market too soon, but by appealing to institutional investors through Ethereum’s expanding ecosystem and smart contract capabilities, they expect to see more in the coming years. He pointed out that there is a high possibility that the funds will be concentrated in the ETH fund.
Existing crypto funds are also encouraging new applications for digital asset ETFs. Bitwise has filed documents with the Securities and Exchange Commission regarding the (XRP) ETF and BTC Treasury ETF. Canary Capital, a company founded by Valkyrie founder Steven McClurg, has also applied for a Spotlight Coin (LTC) fund.
