Bitcoin ETF: BlackRock in the lead, competition lagging behind

The recent data on Bitcoin Spot ETFs seem to confirm BlackRock’s upward trajectory. This is hardly surprising given that the financial powerhouse reported a quarterly balance sheet exceeding one billion dollars in the first quarter of 2024. Its iShares Bitcoin Trust (IBIT), a bitcoin-linked tracker, is also performing wonders, fully satisfying Larry Fink, its CEO.

Bitcoin Volatility: BlackRock on the Podium of ETF Entries

By launching its Bitcoin Spot ETF in January, BlackRock knew exactly what it was doing: democratizing bitcoin for its millions of clients and profiting from it. Last week, the financial giant reported partial results filled with attractive figures, with quarterly benefits of 1.57 billion dollars for the year 2024.

According to SoSoValue, yesterday's total net outflows of Bitcoin spot ETFs amounted to $36.67 million. The Grayscale ETF GBTC had a net outflow of $110 million in a single day, with GBTC's historical net outflow now standing at $16.38 billion. The Bitcoin spot ETF with the… pic.twitter.com/92c3lbmn7W

— Wu Blockchain (@WuBlockchain) April 16, 2024

Regarding the evolution of its Bitcoin ETF, BlackRock also has no reason to complain. According to Crypto News, the IBIT registered net inflows of 73.4 million dollars on April 15, despite a slight drop compared to the previous day. A performance that stands out while the competition struggles to attract investors, with eight other ETFs stagnating or even experiencing outflows.

Meanwhile, the Grayscale Bitcoin Trust (GBTC) is experiencing setbacks, with fund outflows of 110.1 million dollars, slowing the previous outflows. Despite these turbulences, Bitcoin Spot ETFs are collectively registering net outflows between April 12 and April 15.

A tumultuous period, caught between fund outflows and persistent volatility in the Bitcoin market, which continues to be subject to significant price fluctuations.

Hong Kong ETFs to the Rescue

The Iranian attack on Israel on April 13 triggered a plunge in the price of bitcoin, bringing the queen of cryptocurrencies to its lowest level in three weeks, at 61,918 dollars. A shock in the market whose repercussions are still being felt.

However, as traders scan the horizon, the approach of the Bitcoin halving on April 20 also raises questions. This halving of miners’ rewards fuels speculation about its impact on its price.

Yet, in this turbulent picture, a ray of hope emanates from Hong Kong. On Monday, Bitcoin bounced back significantly, reaching over 66,500 dollars, following the announcement of the approval of cash Bitcoin ETFs. Local issuers like China Asset Management and Bosera Capital received the green light to list Bitcoin and Ether ETFs, thus opening new prospects for investors.

While mainland Chinese investors might inject up to 25 billion dollars into these Bitcoin ETFs, via the Southbound Stock Connect program, analysts predict a significant flow of bitcoins from miners post-halving. A dynamic that promises to keep the market bubbling in the months to come.