JAKARTA - Investors are increasingly interested in Bitcoin-based Exchange-Trad Funds (ETF) products offered by BlackRock, the world's largest asset manager. Bitcoin ETF BlackRock iShares, which is trading with the IBIT ticker symbol, recorded a record daily fund flow of IDR 12.4 trillion ($788 million) on Tuesday, when the crypto market was experiencing turmoil.
The flow of funds shows that investors selected Bitcoin's BitRock ETF as the main trading vehicle for Bitcoin, beating a similar product from Grayscale, which experienced an outflow of up to IDR 157.5 trillion ($10 billion). BlackRock's Bitcoin ETF also ranks second among all ETFs in terms of daily, weekly, and monthly flows.
Bitcoin ETF BlackRock Takes Advantage Of Bitcoin Momentum
The Bitcoin ETF BlackRock iShares was launched in January 2024, after obtaining approval from the US Securities and Exchange Commission (SEC). This ETF is a collection of assets that function like mutual funds, but are traded on stock exchanges like common shares. This ETF contains Bitcoin spot, namely Bitcoin which is traded directly on the crypto market.
Bitcoin ETF BlackRock iShares offers investors convenience and security in investing in Bitcoin, without the need to own a crypto wallet or take care of other technical aspects. This ETF also provides high price transparency and liquidity, as well as lower costs than similar products.
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Bitcoin ETF BlackRock iShares has also taken advantage of the positive momentum experienced by Bitcoin in recent weeks. On Tuesday, Bitcoin hit a new high price of IDR 1.085 billion ($69,000) per coin, increasing market sentiment. Now, the largest cryptocurrency is trading at a price of IDR 1.032 billion ($65,700) per piece.
The surge in Bitcoin prices was triggered by several factors, such as high demand from institutional and retail investors, expectations for cutting Bitcoin (haling day) mining rewards that will occur in April 2024, and the potential decline in the US central bank (The Fed) benchmark interest rate.
Bitcoin ETF BlackRock Becomes Investor's Choice
According to Bloomberg Intelligence analyst Eric Balchunas, Bitcoin ETF BlackRock iShares has replaced and beat Grayscale Bitcoin Trust (GBTC), which was previously the most popular Bitcoin ETF product. GBTC is a fund that buys and stores Bitcoin, and sells its stake in the Over The Counter (OTC) market.
Quoted from Crypto News, Balchunas wrote on social media platform X, Wow, IBIT experienced a record fund flow of $788 million yesterday, with a team leading nearly $1 billion in gross cash flow despite the backtwisted and far behind GBTC. This is the first experience of how ETF investors will become much better asset holders than (some) people think.
A similar opinion was also expressed by Laurent Kssis, a crypto expert in trading and ETF at CEC Capital. He told Crypto News, "It's great to watch from the capital market perspective that iShares has replaced and replaced GBTC from being the main trading vehicle for Bitcoin".
Kssis added, We always say that GBTC products are inadequate for institutional investors but which first succeed in the secondary market through loopholes in regulations to recognize products in the OTC market.
Meanwhile, GBTC has experienced nearly IDR 157.5 trillion ($10 billion) outflows, but has the same amount of assets as it was on its launch day. Balchunas calls this phenomenon "magic", which is caused by subsidies in the bull market and capital market physics.
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