BlackRock’s Bitcoin ETF Outpaces Gold ETF With 6.96B Inflows
1min read BlackRock’s iShares Bitcoin Trust (IBIT) has attracted significant investor interest this year, surpassing the inflows of the world’s largest gold-backed ETF. The fund has seen a net inflow of $6.96 billion since the beginning of the year, making it the sixth-largest ETF in terms of inflows. In contrast, the SPDR Gold Trust (GLD), which is the world’s largest physically backed gold ETF, has seen net inflows of $6.5 billion, placing it in the seventh position.
Ask Aime: Why has BlackRock's iShares Bitcoin Trust outpaced the world's largest gold-backed ETF this year?
This performance is particularly notable given the significant price surge in gold, which has risen almost 29% this year. Despite this, investors have shown a strong preference for Bitcoin, with IBIT’s inflows indicating a persistent confidence in the cryptocurrency’s long-term prospects. The price of Bitcoin, while not matching gold’s gains, has still managed to attract substantial investment, highlighting its growing role in diversified portfolios.
The steady inflows into ibit over the past three weeks have been a key driver of its success. The fund has outpaced its peers in the spot Bitcoin ETF market, posting continuous inflows for 15 straight trading sessions. In the last week alone, IBIT added nearly $2.5 billion in net inflows, continuing its momentum with another $531 million on May 5. This strong performance has reinforced confidence in Bitcoin ETFs, with analysts noting that attracting more cash than gold under such market conditions is a strong signal of IBIT’s long-term potential.
The shift in market participants towards IBIT suggests a more diverse and institutional audience is now participating in the market. This trend likely stems from increased demand for regulated exposure to Bitcoin, especially during uncertain macroeconomic times. ETFs like IBIT offer a gateway for traditional investors to tap into crypto markets without directly holding the assets, reinforcing Bitcoin’s growing role in modern portfolios. The fund’s success highlights the growing acceptance of Bitcoin as a viable investment option, even in comparison to traditional safe-haven assets like gold.
