BlackRock’s Bitcoin ETF Surge Sparks Wall Street’s Crypto Gold Rush
Wall Street's sleeping giant just woke up—and it's hungry for Bitcoin. BlackRock's ETF blitzkrieg has ignited a institutional stampede into crypto, leaving traditional finance scrambling to catch up.
The dam is breaking. After years of regulatory foot-dragging, the world's largest asset manager is forcing open the floodgates. Pension funds and boomer investors—once crypto's loudest skeptics—are now quietly repositioning portfolios.
Meanwhile, the usual Wall Street suspects are tripping over themselves to launch copycat products. Nothing inspires innovation like fear of missing out on management fees.
This isn't just about ETFs. It's the final surrender of old finance to the new world order—where code cuts out middlemen and math replaces trust. The revolution will be tokenized.
$104,806 ETFs surpassed their eighth consecutive day of net inflows on Wednesday, garnering a total of $2.4 billion during this period. BlackRock’s IBIT fund maintained its leadership with an individual inflow of $278.9 million, while Fidelity’s FBTC experienced a $104.4 million increase. Conversely, Grayscale’s GBTC was the only fund to encounter an outflow, amounting to $16.4 million. Meanwhile, the recovery of spot Ethereum
$2,530 ETFs appeared to stall, attracting a net inflow of just $19.1 million on Wednesday. Experts attribute the robust demand for Bitcoin ETFs and the sluggish momentum in ethereum to macroeconomic uncertainties and a lack of catalysts.
ContentsStrong Growth in Bitcoin ETFs Led by BlackRockEthereum ETFs Experience a Slowdown
Strong Growth in Bitcoin ETFs Led by BlackRock
The eight-day net inflow sequence underlines the sustainable appeal of bitcoin ETFs among institutional investors. Remarkably, BlackRock’s IBIT alone accounted for a staggering $2.3 billion, approximately 96% of the total $2.4 billion inflow during this period. Fidelity’s FBTC also emerged as a noteworthy contributor among the funds.
This consecutive inflow streak indicates that the sector has amassed approximately $11.5 billion since the beginning of the year. Since their market debut in January 2024, U.S. spot Bitcoin ETFs have attracted a net total of $46.9 billion. The funds’ total assets under management have soared to approximately $125 billion, mirroring Bitcoin’s price appreciation. This performance effectively counters earlier critiques of “low demand.”
Ethereum ETFs Experience a Slowdown
Spot Ethereum ETFs in the U.S. continue to linger in Bitcoin’s shadow. After a record net inflow of $1.4 billion over a 19-day period last week, inflows into these ETFs have decelerated significantly. The $19.1 million net inflow observed on Wednesday was primarily absorbed by BlackRock’s ETHA fund, with a substantial $15.1 million contribution. Since their debut at the end of July 2024, Ethereum ETFs have cumulatively drawn a net inflow of $3.9 billion.
Valentin Fournier, Chief Analyst at BRN, shares that institutions remain optimistic about cryptocurrency‘s mid-term potential, yet emphasizes that Ethereum’s “recovery phase” has concluded. Fournier notes, “Despite rising institutional flows, momentum continues to soften due to geopolitical tensions and a lack of catalysts.” This stagnation stands in stark contrast to Bitcoin ETFs, which attracted over $3.8 billion in the same 19-day period.
Even with the Federal Open Market Committee’s (FOMC) decision to keep interest rates unchanged, Federal Reserve Chair Jerome Powell’s hawkish tone in his press briefing and ongoing geopolitical tensions are dampening market sentiment. Bitcoin has declined by 0.3% over the past 24 hours and 2.5% over the past week, trading at $104,810. Ethereum, meanwhile, fell by 8.3% during the same timeframe to $2,527. Fournier points out that while Bitcoin is striving to hold above $100,000, it faces difficulties surmounting resistance and may test the $102,000 support if momentum doesn’t build. Given macroeconomic uncertainties and a lack of short-term catalysts, he advises a cautious approach.
David Hernandez, cryptocurrency Investment Specialist at 21Shares, offers a more optimistic viewpoint. Hernandez believes Bitcoin’s scarcity, decentralization, and neutrality make it increasingly relevant and attractive for investors navigating an uncertain future, as faith in a “soft landing” diminishes and global financial flows diverge. He further claims, “Bitcoin has firmly positioned itself above $100,000, and its resilience in the face of geopolitical shocks demonstrates its widespread adoption and evolving investment narrative.”
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