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BlackRock’s Bitcoin ETF Smashes Records with $6.2 Billion Inflows in May

Blackrock and Bitcoin logo on dark background with shiny details. 3D render. MUENSTER, GERMANY - June 17, 2023

BlackRock’s iShares Bitcoin Trust (IBIT) is making waves in the investment world, closing May with an unprecedented $6.2 billion inflow. This milestone marks the strongest month since the ETF’s launch earlier this year and underscores Bitcoin’s growing acceptance in mainstream finance.

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Consistent Daily Inflows Signal Strong Confidence

One of the most remarkable aspects of IBIT’s performance in May is its near-daily net inflows. On 30 out of 31 trading days, money poured into the fund, including a massive $481 million on May 28 alone. Such steady inflows are rare, especially in a market known for volatility like cryptocurrency.

BITCOIN ETF FLOW TABLE
Source: Farside

Since its debut in January 2024, IBIT has grown rapidly, now managing over $72 billion in assets. This achievement places it among the top 25 largest ETFs globally — an impressive feat considering the fund is less than a year old. By comparison, many other top ETFs have been operating for over a decade.

Why Investors Are Rallying Behind IBIT

Several key factors are driving this surge in inflows:

BlackRock’s IBIT Leading the U.S. Bitcoin ETF Market

Among the various Bitcoin ETFs available in the U.S., IBIT is dominating the market. During a recent 10-day stretch, it attracted 96% of all new money flowing into spot Bitcoin ETFs. Over the past five weeks, U.S. Bitcoin ETFs collectively pulled in over $9 billion, while gold funds experienced more than $2.8 billion in outflows.

This trend suggests a shifting investor preference, with some choosing “digital gold” over traditional gold investments. While the shift isn’t universal, it’s a significant indicator of evolving market sentiment.

IBIT’s rapid growth reflects a larger trend of crypto’s integration into mainstream finance — from institutional portfolios to retirement accounts. However, the cryptocurrency market remains volatile, and regulatory changes could still impact investor behavior.

For now, BlackRock’s Bitcoin ETF is proving that Bitcoin is no longer an outsider in the financial world. With billions flowing into IBIT, Bitcoin has firmly taken its place on Wall Street, signaling a new era of acceptance and opportunity.

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