On the 21st of May, BlackRock's investment fund for Bitcoin took the lead in the market, capturing 95% of the total money flowing into U.S. Bitcoin ETF funds. Initial data from Farside Investors showed that BlackRock's iShares Bitcoin Trust (IBIT) received a substantial net inflow of $290 million. Altogether, all eleven ETF providers together reported net inflows of $305.7 million on that same day.

Factors Driving the ETF Market

This significant influx represents the highest point for BlackRock's ETF fund since April 5, reversing a six-week trend of minimal or no inflows. The recent numbers also exceed the inflows seen over the past 21 trading days. In the last four trading days, over $1 billion has flowed back into Bitcoin ETF funds, fueled by the volatile price surge of Bitcoin.

When factoring in the most recent daily data, BlackRock's fund has amassed a total inflow of $16 billion since its establishment. Despite this, the fund's official website lists assets under management (AUM) at $19 billion. This positions BlackRock's IBIT fund in close proximity to the leading fund in the sector, Grayscale's GBTC spot ETF, which reports $20 billion in AUM according to its official records.

Movement in Various Funds

In contrast, Grayscale's GBTC reported no inflows on May 21, marking five consecutive days without any outflows. The fund received an inflow of $72.5 billion over the past five days, reversing a trend of four months of continuous outflows.

On the 21st of May, while BlackRock observed substantial inflows, VanEck Bitcoin Trust ETF (HODL) saw an outflow of $5.9 million, and Bitwise Bitcoin ETF (BITB) experienced an outflow of $4.2 million. Fidelity Wise Origin Bitcoin Fund (FBTC) recorded a smaller inflow of $25.8 million, with other funds reporting no inflows.

The excitement surrounding Bitcoin ETFs was notably influenced by Bitcoin's 12% price surge over the past week, reaching a six-week peak of $71,600 on May 21. However, in early trading on May 22, Bitcoin's price dropped to $69,444, falling below the $70,000 threshold.

Key Points

BlackRock's Bitcoin ETF witnessed a substantial inflow on May 21.

The increase in Bitcoin's price triggered heightened activity in ETFs.

Market optimism was reinforced by the potential approval of Ethereum ETFs by the SEC.

The possibility of the Securities and Exchange Commission approving spot Ethereum ETF funds in the U.S. also stirred the cryptocurrency markets this week, further boosting investor confidence.