BlackRock’s ETF Leads with Half the Gains

• Growing demand for BlackRock’s Bitcoin ETF highlights preference over traditional exchanges.
• Bitcoin’s rise boosts interest in ETFs and crypto-related stocks like Coinbase.
• Institutional adoption of Bitcoin ETFs reduces despite an increase in investors. 

BlackRock’s Bitcoin exchange-traded fund (ETF) experienced a surge in demand. The total market capitalization for spot Bitcoin ETFs surpassed $63 billion this week, with nearly $20 billion in net inflows. BlackRock’s Bitcoin ETF supplied half of the $2.1 billion that spot Bitcoin ETFs received in net inflows over the past five trading days.

Samara Cohen, Chief Investment Officer for BlackRock’s ETFs and index investments, shared insights during the Permissionless Conference in Utah and stated that the surge indicated a rise in demand for easier access to Bitcoin through ETFs.

Over the past year, BlackRock positioned itself as a key player in the U.S. Bitcoin ETF market. Cohen stated that the spot Bitcoin ETF, which was launched at the beginning of the year, showed an increased interest in a product that simplified users’ Bitcoin investments. 

Crypto Market Expands with Institutional Interest

At teh time of press, Bitcoin was trading above $68,300, marking a 140% yearly rise by the end of Q3. The gains of the prominent crypto extended its impact to crypto-aligned stocks, with Coinbase seeing a 24% increase in its stock value over the same period.

Despite this, institutional investors and wealth managers have been slower to engage with Bitcoin ETFs. However, firms like Morgan Stanley have started to offer Bitcoin ETF products to their high-net-worth clients, signaling a growth in institutional interest.

ETF Growth Reflects Market Evolution

Cohen pointed out that ETFs and blockchain technology share a common goal of decentralizing access to financial products. BlackRock’s approach of reducing risk through rival clearing, combined with the advantages of decentralized finance (DeFi) and blockchain technology, has provided a strong boost for the growth of these financial products.

Since the launch of Bitcoin ETFs in the U.S., the total net inflows have reached $20.66 billion. Over the past week, these ETFs saw net inflows, with BlackRock’s IBIT leading the market by accumulating over $1 billion.