BlackRock's spot Bitcoin ETF (IBIT) has drawn significant investor interest, amassing $6.96 billion in net inflows since the beginning of the year. This positions it as the sixth-largest among all exchange-traded funds, according to Bloomberg data. Despite Bitcoin's 3.8% gain lagging behind gold's nearly 29% surge this year, investors remain keen on adding the cryptocurrency to their portfolios.
The SPDR Gold Trust (GLD), the world's largest physically backed gold ETF, recorded $6.5 billion in net inflows, slipping to seventh place on Monday. IBIT's strong performance underscores institutional confidence in Bitcoin's long-term potential, even with its price currently more than 10% below its January record high. Gold's rise to $3,384 is attributed to international trade disputes, inflation concerns, and geopolitical tensions.
Eric Balchunas, Bloomberg's senior ETF analyst, noted on X that IBIT's ability to attract more cash despite Bitcoin's underperformance is a positive sign. He expressed confidence that Bitcoin ETFs will triple gold's assets under management in three to five years.
This article is based on our author's analysis of materials taken from the following resources: Bloomberg.