BlackRock Bitcoin ETF, 15th consecutive day of net inflow…“Confident in tripling Gold ETF assets in 3-5 years”

BlackRock Leading The Growth Of Bitcoin Spot ETF (Source: Reuters)

With continuous inflows for 15 consecutive trading days into BlackRock's Bitcoin Spot ETF, IBIT, the market's attention is focused. Bloomberg Senior ETF Analyst Eric Balchunas evaluated, “IBIT had a net inflow of 500 million dollars the previous day, ranking 6th in this year’s ETF net inflow ranking. It surpasses GLD, which recorded a significant net inflow due to the surge in gold prices. However, while GLD rose by 23%, the IBIT price only rose by 4.03%. The continuous inflow of cash into IBIT in this scenario is a good long-term signal and instills confidence in our forecast that the assets under management in Bitcoin ETF will triple that of gold within 3 to 5 years.”

This year, as gold prices hit an all-time high, funds were directed towards the Gold ETF GLD, but IBIT surpassed it in terms of net inflow scale. The market interprets the steady inflow of funds despite relatively minor price increases as a signal of institutional investors' 'long-term position building.' Particularly, the continuation of fund inflows even during the phase of expanding Bitcoin price volatility is viewed as evidence that investors are accepting digital assets as a new ‘portfolio stabilizer.’

Experts focus on the potential for IBIT to surpass Gold ETF in terms of long-term Assets Under Management (AUM) if the IBIT net inflow trend continues. The demand from institutions brought on by the approval of Bitcoin Spot ETF and the expansion of trading infrastructure in mainstream financial sectors are expected to widen the adoption of Bitcoin ETF by conservative investor groups over the coming years. However, suggestions are emerging that if the price rise does not keep pace with the fund inflow speed over a long period, one should be wary of short-term volatility expansion.

Currently, IBIT is emerging as a ‘rising star’ within the ETF market, pulling in cumulative funds nearing 60 billion dollars. The asset management industry regards it as “a potential alternative comparable to traditional safe assets if the streak of continuous net inflows continues,” pinpointing the next 3 to 5 years as a major viewing point.