BlackRock Bitcoin ETF Grabs Spotlight With $290M Inflow, Outshines Rivals

On Tuesday, May 21, Spot Bitcoin ETF flows witnessed a notable positive influx, totaling $305.7 million. This substantial investment surge was led by BlackRock’s iShares Bitcoin Trust (IBIT). The IBIT ETF outshined its rivals and seized the limelight with the highest influx in the latest trading session.

Bitcoin ETF Inflows Continue Surging

According to Farside UK data, BlackRock’s IBIT recorded an impressive $290 million in inflows. Moreover, Fidelity’s FBTC also contributed significantly with $25.8 million, indicating strong institutional interest in Bitcoin ETFs. It marks a surge from Monday’s inflows of $237.2 million. However, the inflow streak of Grayscale’s GBTC came to a halt with zero flows recorded on Tuesday.

On the flip side, two prominent ETF players witnessed outflows, which were offset by BlackRock’s IBIT. The Bitwise Bitcoin ETF (BITB) noted an outflow of $4.2 million. Furthermore, VanEck’s HODL mirrored the move with $5.9 million negative flows.

Despite the considerable net inflows, the Bitcoin price trajectory experienced volatility. Following a significant rise on Monday, Bitcoin’s price fell from $71,500 to $69,000. However, it has since stabilized around the $70,000 mark. This fluctuation underscores the ongoing volatility in the crypto market, even as institutional investments continue to pour in.

Moreover, analysts suggest that a few more days of positive inflows could be crucial for Bitcoin to clear its current price area and potentially move higher. Whilst, the sustained interest and investment from major ETF participants like Blackrock and Fidelity are seen as positive indicators of Bitcoin’s potential for further growth.

Additionally, the upcoming approval of an Ethereum ETF could serve as a significant catalyst for the broader crypto market. The introduction of an Ethereum ETF is anticipated to attract new investments and enhance market liquidity. It could potentially drive up prices for both Ethereum and Bitcoin.

Also Read: Bitcoin ETF Inflows At 7 Times Daily Supply, GBTC Inflows Continue

Is Ether ETF Approval Imminent?

On Tuesday, Fidelity submitted an amended S-1 filing to the U.S. Securities and Exchange Commission (SEC) for its Spot Ethereum ETF application. This move comes amid growing anticipation that the SEC might approve these ETFs on May 23. Fidelity’s amendment, which omits staking provisions, reflects a broader industry trend responding to the SEC’s recent guidance.

Moreover, Grayscale Investments also withdrew its staking proposal from its Spot Ethereum ETF plan shortly after Fidelity. The decision was disclosed in an amended preliminary proxy statement for the Grayscale Ethereum Trust. It eliminates the option for investors to stake through the trust.

Furthermore, this strategic change aligns with the SEC’s evolving stance and aims to enhance approval odds. In addition, the SEC’s request for issuers of Spot Ethereum ETFs to submit their 19b-4 filings has generated strong market reactions, indicating increased approval likelihood. Historically, the ambiguous status of Ethereum as a ‘security’ has posed a significant barrier.

However, the SEC’s latest actions suggest a potential shift in this position. Alex Thorn, a researcher at Galaxy, has provided critical insights into these developments. Thorn suggests that the SEC may distinguish between Ethereum (ETH) and staked Ethereum (stETH) or “staking as a service ETH.”

This differentiation could enable the approval of Ethereum ETFs without conflicting with the SEC’s previous views. By recognizing staked ETH as a separate category, the SEC could address regulatory uncertainties that have hindered previous approvals.

This approach is expected to pave the way for Ethereum ETFs in the U.S. market. Additionally, Fidelity and Grayscale’s latest move, along with similar actions from other applicants like Ark 21Shares, underscores the potential for imminent approval.

Also Read: Breaking: Fidelity Slashes Staking For Ethereum ETF In Latest S-1 Amendment