Crypto ETF Frenzy: Blackrock Dominates With Colossal $741M Bitcoin Inflow

Crypto ETF Frenzy: Blackrock Dominates With Colossal $741M Bitcoin Inflow

$639M Inflows Propel Bitcoin and Ethereum Funds

Tuesday marked a record-breaking day for U.S. crypto exchange-traded funds (ETFs), with bitcoin (BTC) and ethereum (ETH) ETFs amassing a combined $638.69 million in positive inflows. The standout performer was Blackrock’s IBIT spot bitcoin ETF, which captured an extraordinary $741.41 million, solidifying its position as the leader in the market.

Bitcoin ETF Performance Highlights

Spot BTC ETFs recorded an impressive $493.95 million in inflows. Notable contributions include:

• Blackrock’s IBIT: $741.41 million

• Grayscale’s Bitcoin Mini Trust: $3.78 million

• Vaneck’s HODL: $3.01 million

However, these gains were partially offset by significant outflows from other funds:

• Fidelity’s FBTC: -$128.17 million

• Grayscale’s GBTC: -$84.71 million

• Bitwise’s BITB: -$24.36 million

• Ark Invest’s ARKB: -$17.01 million

Despite these setbacks, the day’s $493.95 million influx pushed the total net inflows to a staggering $36.73 billion since January 11, 2024. Trading volume on December 17 reached $4.45 billion, with the 12 active bitcoin ETFs now holding $121.68 billion in BTC.

Ethereum ETF Surge

Ethereum-focused ETFs also performed strongly, pulling in $144.74 million on Tuesday. Key contributors include:

• Blackrock’s ETHA: $134.85 million

• Grayscale’s Ethereum Mini Trust: $4.45 million

• Fidelity’s FETH: $3.94 million

• Franklin Templeton’s EZET: $1.5 million

Since July 23, 2024, these nine spot ether ETFs have attracted $2.46 billion in inflows. Current holdings stand at $14.04 billion, representing 2.96% of ETH’s market capitalization. Tuesday’s trading volume for ethereum funds was reported at $664.87 million.

Market Impact and Implications

Blackrock’s dominance in both bitcoin and ethereum ETFs underscores its pivotal role in driving the market’s growth. The record inflows highlight increasing institutional confidence in crypto assets, even as certain funds experience outflows.

The remarkable surge in inflows for both BTC and ETH ETFs reflects a maturing market and a growing appetite for regulated crypto investment vehicles. This momentum could pave the way for further adoption and innovation in the cryptocurrency space.