The 12th of December saw the eleventh day of daily inflows since the beginning of the month, with approximately $600 million flowing into Bitcoin spot exchange-traded funds (ETFs) in the US.
The recent climb of Bitcoin’s price beyond the $100,000 psychological mark has boosted the inflows, as it has broken a significant barrier for additional potential gains. In anticipation of further price gains, institutional investors are buying Bitcoin ETFs at a steady rate, reflecting a positive market attitude.
Bitcoin Inflows Reach $35.17B, Driven by BlackRock
The funds have now recorded net inflows totaling $35.17 billion, including $600 million on Friday. At present, the total value of asset issuers’ Bitcoin (BTC) holdings stands at $112.55 billion, indicating a 5.68% increase over time. According to blockchain ETF tracker SoSoValue, the largest single-day inflow was $432 million, locked in by BlackRock’s iShares Bitcoin Trust (IBIT). After seeing zero investment activity on December 11, this is a huge improvement.
The increase has increased BlackRock’s overall market share in Bitcoin to 3%. In response to the recent uptick in Bitcoin activity, BlackRock stated that a “reasonable range” for multi-asset portfolios includes an allocation of up to 2% Bitcoin. According to the asset management behemoth, which is responsible for $11.5 trillion in AUM, a 1%-2% Bitcoin exposure provides a risk profile comparable to owning the “Magnificent Seven” tech equities.
Corporate entities are increasingly using Bitcoin as a reserve asset to safeguard themselves against market fluctuations and unforeseen obstacles. Jetking Infotrain, an Indian tech business, made history earlier this week when it became the first publicly traded Indian company to use Bitcoin as a corporate reserve. On December 9, the 77-year-old firm entered the cryptocurrency market with the acquisition of 12 BTC, with a valuation of approximately $1.2 million.
Bitcoin ETFs Gain; Grayscale Loses on Dec. 12
Other than BlackRock’s IBIT, Bitcoin ETFs saw strong inflows on December 12. The Fidelity Wise Origin Bitcoin Fund (FBTC) has received a total of $12.25 billion in capital, with $30.54 million of it coming from institutional investors, as reported by SoSoValue.
Other major Bitcoin ETFs that experienced significant activity included Bitwise Bitcoin ETF (BITB), which received $61.45 million in inflows, WisdomTree Bitcoin Trust (BTCW), and ARK 21Shares Bitcoin ETF (ARKB). The funds received $8.97M, $61.45M, and $2.65M respectively.
However, not all funds managed to capitalize on the surge of enthusiasm and achieve success. Against the general trend, Grayscale’s Bitcoin Trust (GBTC) saw withdrawals of approximately $48.40 million. Despite the withdrawal of $110.76 million from its Grayscale Bitcoin Mini Trust (BTC), institutional investors remained divided. Other Bitcoin ETFs listed in the US, including Invesco Galaxy Bitcoin ETF (BTCO), Franklin Templeton Digital Holdings Trust (EZBC), and Hashdex Bitcoin ETF (DEFI), showed no investor activity on December 12.
Final Thoughts
The increase of Bitcoin above $100,000 drove $35.17 billion in net inflows for December, with $600 million flowing into Bitcoin ETFs daily. With a $432 million inflow, BlackRock’s iShares Bitcoin Trust (IBIT) increased its market share to 3%, making it the leading fund. Companies like Jetking Infotrain are using Bitcoin as a corporate reserve, indicating that institutional investors consider it a favorable investment. Despite the high interest in Bitcoin ETFs, investor sentiment remained mixed, as $48.4 million left Grayscale’s Bitcoin Trust (GBTC).
FAQs
Which Bitcoin ETF had the largest single-day inflow?
BlackRock's iShares Bitcoin Trust (IBIT) received the largest single-day inflow of $432 million, boosting its market share to 3%.
How are institutional investors using Bitcoin in their portfolios?
BlackRock advises a 1%-2% Bitcoin allocation in multi-asset portfolios, comparing it to the risk profile of owning major tech stocks like the "Magnificent Seven."
What role is Bitcoin playing for corporate entities?
Companies like Jetking Infotrain are adopting Bitcoin as a corporate reserve asset to protect against market volatility and uncertainties.
Why did Grayscale Bitcoin Trust (GBTC) see withdrawals?
Despite overall positive trends in Bitcoin ETFs, GBTC faced a $48.4 million withdrawal, reflecting mixed investor sentiment and competition from newer Bitcoin ETFs.
