BlackRock's Bitcoin ETF Gobbles Up $1B This Week, Fidelity Leads Among Ethereum ETFs With $31M

BlackRock’s iShares Bitcoin Trust (NASDAQ: IBIT) ETF has attracted over $1 billion in inflows this week alone, which has helped propel the apex crypto to a 10% seven-day gain.

What Happened: According to data from SoSo Value, spot bitcoin ETFs in the U.S. garnered $470 million on Thursday alone. BlackRock’s IBIT was the frontrunner, pulling in $309 million, contributing to a total of $1.07 billion for the week.

Overall, spot bitcoin ETFs have experienced significant inflows, with 12 funds amassing over $1.85 billion this week. Ark and 21Shares’ ARKB saw over $100 million in inflows. Grayscale’s GBTC recorded $45.70 million, while Fidelity’s FBTC had $11.69 million.

According to crypto analyst Rachael Lucas, per The Block, this trend is due to favorable macroeconomic conditions. When central banks reduce interest rates, investors explore alternative assets.

Thursday’s trading volume for bitcoin ETFs was approximately $1.47 billion, slightly lower than the previous day. Since January, cumulative net inflows have reached $20.66 billion, a milestone described by Bloomberg’s Eric Balchunas as “the most important metric in ETF world.”

Spot Ethereum ETH/USD ETFs also reported positive flows, with $48.41 million on Thursday. Fidelity’s FETH led with $31.12 million, followed by BlackRock’s ETHA with $23.56 million. Despite these gains, Grayscale’s ETHE experienced $15.74 million in outflows.

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Why It Matters: The surge in inflows Bitcoin ETFs comes as the cryptocurrency industry continues to grow according to important metrics.

According to a recent report by Coinbase and Glassnode, the crypto market is maturing, with successful spot ETFs and increased trading volumes cited as key growth drivers. Venture capital firm a16z found in a separate report that monthly active addresses are at all-time highs, up thrice from levels at the end of 2023.

The Securities and Exchange Commission had approved Bitcoin ETFs in January this year, following a controversial incident involving a hack of the SEC’s account.

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