BlackRock’s $26 billion Bitcoin ETF has been crowned as the fastest-growing fund on Wall Street, with a surge in demand for Bitcoin products last week. The spot Bitcoin exchange-traded fund (ETF) managed to capture $1.1 billion in new cash, highlighting the growing interest in digital assets among investors.
BlackRock, a major player in U.S. wealth management, has been focusing on Bitcoin as its spot Bitcoin ETF outperformed several traditional finance offerings. The fund, known as IBIT, has attracted a total of $26 billion in investments just 10 months after its debut in mid-January. This impressive growth has propelled IBIT into the top 2% of all ETFs in the U.S.
During the week of October 14 to October 18, U.S. spot Bitcoin ETFs saw a total of $2.2 billion in inflows, with BlackRock’s IBIT accounting for half of that amount. This influx of $1.1 billion marked a significant milestone for the fund, making it the third highest in terms of flows year-to-date. It was also IBIT’s best week since March, solidifying its position as the fastest-growing ETF on Wall Street and in financial history.
The success of U.S. spot Bitcoin ETFs has not gone unnoticed, attracting media attention and sparking discussions about Bitcoin as an asset. While Ethereum spot Ether ETFs have seen more modest milestones compared to their Bitcoin counterparts, there is optimism that they will also succeed in the long run.
Bitwise CIO Matt Hougan believes that Ethereum ETFs will gain traction due to the expanding ecosystem of Ethereum and its appeal to institutional investors through smart contract capabilities. In fact, Bitwise has already submitted paperwork for an XRP ETF and a BTC-Treasury ETF, while Canary Capital has filed for a spot Litecoin fund.
Overall, the rapid growth of BlackRock’s Bitcoin ETF and the increasing interest in digital asset ETFs signal a shifting landscape in the world of finance. As cryptocurrencies continue to gain mainstream acceptance, it is likely that more institutional investors will flock to these innovative investment opportunities in the coming years.