BlackRock’s Bitcoin Juggernaut: iShares Trust Gobbles Up Market Share as Capital Floods In

Wall Street’s crypto love affair hits hyperdrive as BlackRock’s iShares Bitcoin Trust becomes the undisputed heavyweight champ. Forget ’slow and steady’—this fund’s pulling in cash like a magnet in a scrap yard.

Institutional investors are piling in, turning the ETF into a liquidity black hole that’s warping the market around it. Meanwhile, legacy finance scrambles to keep up—turns out, even billion-dollar asset managers can FOMO.

One cynic’s take: Nothing unshackles innovation like the chance to skim fees off a volatile asset class. Welcome to the institutionalization of Bitcoin—where the suits finally found a way to make decentralization centralized.

$108,890 ETFs in the US show no signs of slowing down, highlighted by BlackRock’s iShares Bitcoin Trust (IBIT) making a significant impact on May 28. The sector experienced an uninterrupted influx wave lasting 10 days, reaching a staggering $4.26 billion, with the latest $432.7 million infusion almost entirely flowing into IBIT. Ark Invest’s ARKB faced a $34.3 million outflow, while Fidelity’s FBTC saw a $14 million decrease. Other issuers’ ETFs exhibited minimal movement, allowing IBIT to achieve a net capital inflow of $49 billion since January 2024, setting it far ahead of competitors.

ContentsIBIT’s Unique Performance in Capital InfluxShifting Balance in the ETF Market as Volume Increases

IBIT’s Unique Performance in Capital Influx

From April 9, IBIT has not experienced a single day of capital outflow, with only three days of no inflow. This marathon over 33 business days has added $9.31 billion into the fund, propelling its assets under management to $72 billion, ranking 23rd in the entire ETF universe. Bloomberg’s senior analyst Eric Balchunas described this as an astounding achievement for a fund that is merely a year old.

ETF Store President Nate Geraci remarked on the remarkable performance by stating that a $10 billion limit was presumed for the total spot Bitcoin ETF category, yet IBIT amassed it in just one month. In essence, IBIT is redefining expectations for the cryptocurrency market.

Experts liken IBIT’s capital influx to a “Pac-Man,” noting the fund’s rapid market share expansion. Furthermore, the $23.1 billion outflow from Grayscale’s high-fee GBTC has not satiated IBIT’s appetite. IBIT remains among the top five in capital inflow among over 4,200 US ETFs since the start of the year.

Shifting Balance in the ETF Market as Volume Increases

Alongside capital influx, trading volume records are also being set. Last week, as Bitcoin’s price surged to $112,000, US spot bitcoin ETFs exceeded $25 billion in trading, reaching this year’s peak. On May 28 alone, the trading volume was $3.4 billion, with IBIT contributing $2.6 billion, capturing nearly 80% of the volume market share. The fund’s momentum reveals the dramatic shift in institutional investors’ views toward the cryptocurrency market.

On the same day, spot Ethereum$2,730 ETFs also saw an influx of $84.9 million. BlackRock’s ETHA led with $52.7 million, while Fidelity, Grayscale, and Invesco also contributed positively, marking an eight-day positive streak totaling $394.1 million. The total net influx reached $2.9 billion, as two major cryptocurrencies continue to strengthen their presence on Wall Street’s traditional shelves, with the spot cryptocurrency ETF market continuing to grow.

As the article was prepared, Bitcoin traded around $108,492, with analysts predicting ongoing volatility in both price and capital inflow into ETFs, while suggesting that IBIT is unlikely to lose its momentum anytime soon.

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