Record-Breaking Bitcoin ETF Inflow for Bitwise, Fidelity, BlackRock

• Bitwise Bitcoin ETF (BITB) Leads in Cash Inflow Among Newly Issued Products
• Preliminary Data and Further Expectations
• BlackRock's IBIT and Inflow Projections
• Tremendous Trading Volume on First Day
• Comparison with ProShares' Futures-Based Bitcoin ETF
• Impact of Spot Bitcoin ETFs on Digital Asset Industry

Bitwise Bitcoin ETF (BITB) Leads in Cash Inflow Among Newly Issued Products

Audacious evidence indicates that Bitwise's bitcoin ETF (BITB) experienced the largest cash inflow among the 11 new products that started trading on Thursday, closely followed by Fidelity's fund (FBTC). This data was presented in a BitMex Research X post, which used Bloomberg's data as its source.

Preliminary Data and Further Expectations

Much of the data shared by the issuers prior to the market opening on Friday was preliminary, and full details could be delayed until Friday evening. This insight was provided by Eric Balchunas, an ETF analyst at Bloomberg Intelligence. On its first day, BITB pulled in $238 million in net assets, while FBTC gathered $227 million.

BlackRock's IBIT and Inflow Projections

BlackRock's IBIT, anticipated to be the top challenger among the new ETFs due to the asset manager's reputation and scale, drew in $110 million in inflows. It had the second highest first-day trading volume among bitcoin ETFs. According to the fund's website, IBIT had $120 million in bitcoin (BTC) and an additional $112 million in cash as of Thursday. Balchunas pointed out that some of Thursday's inflow might surface in Friday's data.

Tremendous Trading Volume on First Day

Spot bitcoin ETFs demonstrated an impressive first trading day, registering a combined daily volume of $4.6 billion with Grayscale's GBTC and BlackRock's IBIT leading. Bloomberg Intelligence analyst James Seyffart contributed this information. Easily the biggest Day One splash in ETF history, stated Eric Balchunas, ETF analyst at Bloomberg Intelligence.

Comparison with ProShares' Futures-Based Bitcoin ETF

By comparison, ProShares' futures-based bitcoin ETF (BITO) accumulated $570 million inflows with $1 billion trading volume on its debut day in October 2021. This launch coincided with the peak of the crypto bull market. On Thursday, BITO saw outflows of 3,000 BTC, approximately $140 million, as investors likely transferred funds to more user-friendly spot-based ETFs. Nevertheless, the fund's assets consistently increased this week, according to K33 Research data.

Impact of Spot Bitcoin ETFs on Digital Asset Industry

The introduction of spot bitcoin ETFs on Thursday was generally considered a significant landmark for the digital asset industry. These products provide exposure to the largest and oldest cryptocurrency in a more accessible format through traditional financial channels, simplifying bitcoin investment for mainstream investors. Industry experts predict these products will draw billions of dollars of new money into bitcoin over time. Analysts at Standard Chartered have predicted that spot ETFs could attract between $50 billion and $100 billion in inflows this year.

Edited by Jonathan Stoker