Wall Street Interest in Bitcoin Grows as BlackRock Bitcoin ETF Attracts $500M
The years of pent-up demand for Bitcoin (BTC) exchange-traded funds (ETFs) is still fueling strong activity around the top cryptocurrency, with the new investment vehicle experiencing their most robust days yet.
BlackRock, the world’s biggest fund manager, is leading the way. Just yesterday, the fund manager’s iShares Bitcoin Trust received a $493 million inflow—and now has $5.1 billion in assets under management.
Meanwhile, Grayscale’s GBTC has the most cash, with over $22.9 billion. The fund previously operated as a closed-end fund and held large amounts of crypto. However, in January, it transitioned into an ETF, providing users with more flexibility in redeeming shares.
Yesterday, a total of $631 million flowed into the ten investment vehicles, BitMex Research shows.
The influx of cash into the crypto funds has caused the price of BTC to rally—it’s now comfortably above the $50,000 mark that it reached for the first time in two years on Monday. CoinGecko shows that BTC is currently trading for $51,622 per coin.
After a decade of rejecting the products, the Securities and Exchange Commission finally approved 10 spot BTC ETFs on January 10.
Meanwhile, it seems that investors are losing interest in gold—at least among ETF adherents. Bloomberg ETF analyst Eric Balchunas said on Twitter that investors were pulling money out of gold ETFs.
These vehicles provide more seasoned and traditional investors with exposure to crypto: the funds hold the digital coins, while people can buy shares that track the BTC’s underlying price and not have to worry about where to keep it.
Edited by Ryan Ozawa.
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