17h05 ▪ 3 min read ▪ by Fenelon L.
Summarize this article with:
On October 19, BlackRock’s IBIT fund attracted 665.16 million dollars while the entire American spot bitcoin ETF market only received 526.6 million. The two biggest rivals alone lost the equivalent of the gap. Demand is not returning, it is concentrating.
In brief
- IBIT attracted 665.16 million dollars on October 19, according to SoSoValue data.
- Fidelity and Grayscale recorded outflows of 83.6 and 54.9 million dollars respectively.
- On October 1, ETFs excluding BlackRock had already lost 93 million dollars despite an overall positive balance.
BlackRock captures inflows, its competitors falter
The figures reveal a striking contrast. Alone, IBIT attracted more capital than the entire American spot Bitcoin ETF market. Indeed, the 665.16 million dollars collected by BlackRock exceed by 138.6 million the net flow of all funds combined.
This difference is mainly explained by withdrawals from two major competitors. Fidelity’s FBTC lost 83.6 million dollars, while Grayscale’s GBTC recorded 54.9 million dollars in outflows. Together, these two funds total 138.5 million dollars in withdrawals, which is almost exactly the observed gap.
This phenomenon is nothing new. On October 1, Bitcoin ETFs excluding BlackRock had already accumulated 93 million dollars in net outflows. IBIT was then enough to keep the overall balance positive. Three weeks later, the same scenario is repeating, with larger amounts.
After outflows, a rebound that remains fragile
This return of inflows comes after a negative session the previous Friday. The turnaround shows how quickly flows can evolve in the bitcoin ETF market, especially when volatility increases.
However, this positive day is not enough to erase recent losses. Between October 1 and 16, American Bitcoin ETFs recorded about 910 million dollars in outflows. At the same time, bitcoin had fallen below the average cost basis of the holders of these funds.
Therefore, these figures must be interpreted with caution. Flows reflect subscriptions and redemptions of shares, not bitcoin purchases made at a specific time. A single session alone cannot confirm a lasting trend change.
Do investors now favor IBIT?
Beyond the rebound, the concentration of capital draws attention. IBIT attracted an amount greater than the net flow of all American ETFs, indicating that other products weighed on the overall result.
However, the data from October 19 do not allow determination of whether investors favor BlackRock for liquidity, arbitrage, or strategy reasons. Similarly, outflows at Fidelity and Grayscale do not necessarily mean their clients are abandoning bitcoin.
The next step will therefore be decisive: will inflows extend to other Bitcoin ETFs or will IBIT continue to concentrate most of the demand? The answer will help better measure the strength of the rebound.
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Fenelon L.
Passionné par le Bitcoin, j'aime explorer les méandres de la blockchain et des cryptos et je partage mes découvertes avec la communauté. Mon rêve est de vivre dans un monde où la vie privée et la liberté financière sont garanties pour tous, et je crois fermement que Bitcoin est l'outil qui peut rendre cela possible.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.