BlackRock Tops in 'Two-Day Total Inflow' of Physical Bitcoin ETF

Explore the dynamic landscape of the physical Bitcoin ETF market where BlackRock’s IBIT leads with a staggering $497.7 million inflow.

Learn about the market shifts, the role of fees in Grayscale’s GBTC outflows, and the strategic moves of major players in this comprehensive article.

Substantial Inflows in Two Days: Over 120 Billion Yen

Last week, the physical Bitcoin ETF, which started trading in the United States, reached a total inflow of $819 million over two days, as reported by Eric Balchunas, an analyst at Bloomberg.

According to Balchunas’s report, the highest total inflow over the two days was BlackRock’s IBIT, amounting to approximately $497.7 million, followed by Fidelity’s FBTC at around $422.3 million.

While other ETF products also recorded inflows ranging from tens of millions to several hundred million dollars, the overall total inflow amounted to $819 million, influenced by an outflow of about $579.1 million from Grayscale’s GBTC.

GBTC’s Outflow: Impact of Fees?

Grayscale’s GBTC, which converted an existing Bitcoin investment trust into a physical Bitcoin ETF, has a fee of 1.5%, in contrast to other ETFs whose fees range from 0.00% to 0.90% (including discounts).

As a result, GBTC holders are presumed to be shifting their funds to other ETF products. BitMEX Research commented in a post on the 13th that “a significant outflow from GBTC in the coming days, weeks, and months is certain.”

Furthermore, BlackRock, which recorded the highest inflow over the two days, is reported to hold “11,439 BTC,” equivalent to about $498 million, as collateral assets to back the value of the iShares Bitcoin Trust (IBIT).

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