Bitcoin ETFs in the United States have been drawing investors' attention since their inception. According to market sentiment, ETFs have become a key factor in the bullish rally of Bitcoin, driving its price to $67,000.
Since the launch of spot ETFs, funds have accumulated approximately 175,000 Bitcoins despite a decline in investments in Grayscale. However, recent data indicates a decrease in capital inflows to BlackRock, sparking interest among investors.
The total inflow of funds into ETFs since their creation has reached around $9.36 billion. On March 7th alone, ETFs accumulated 7,018.2 BTC. Fidelity's Bitcoin ETF led with an inflow of $473.4 million, followed by BlackRock with $244.2 million. While Fidelity continues to grow, BlackRock shows signs of slowing down.
Meanwhile, Grayscale's GBTC faced a fund outflow of $374.8 million on the same day. Since the launch of Grayscale's Bitcoin ETF, the total fund outflow has reached $10.25 billion.
American Bitcoin ETFs Attract Investors
Analyst James Butterfill noted that American Bitcoin ETFs continue to attract investments without slowing down. Bitcoin ETFs strengthen investor confidence in digital assets. Interestingly, even beyond Bitcoin ETFs, there is an increase in investments in digital assets.
"Yesterday saw Digital Asset Fund flows pass the US$10bn net inflow mark ytd, remarkably close to the US$10.6bn we saw in 2021."
Butterfill also reported that the total inflow into digital assets since the beginning of the year has exceeded $10 billion. The United States plays a crucial role in this growth, with an inflow of $10.45 billion in 2024 compared to $4.64 billion in 2021. This growth underscores investor confidence in digital assets and their potential for long-term growth and integration.
This could also pave the way for the emergence of Ethereum ETFs, awaiting approval. The upcoming Bitcoin halving could further stimulate the market.
BlackRock's Interest in Spot Bitcoin ETFs
BlackRock updated its filing with the SEC, expressing its intention to acquire spot Bitcoin ETFs for its Global Allocation Fund (MALOX).
In the statement dated March 7th, MALOX may acquire shares of spot Bitcoin ETFs from BlackRock, IBIT, and ETF, offered by other issuers, focusing exclusively on ETPs traded on national securities exchanges.
The BlackRock Global Allocation Fund, established in 1989, aims to generate income through managing stocks, bonds, and money market securities in the United States and abroad, including companies such as Apple.
On March 4th, BlackRock also updated the reporting of its Strategic Income Opportunities Fund (BSIIX), demonstrating an interest in purchasing spot Bitcoin ETFs.
In connection with this, the Securities and Exchange Commission (SEC) delayed the decision on Nasdaq's proposal for options trading on the iShares Bitcoin Trust (IBIT) from BlackRock, requiring "sufficient time for consideration" of the request.
In a separate SEC document, the deadlines for the Cboe Exchange and the International Stock Exchange of Miami were also extended.
The platforms applied for the listing of spot options on Bitcoin ETF on January 25th, with the initial SEC decision deadline set for March 10th. The agency has now been granted additional time to review the request for 90 days, with the final deadline on April 24th.
Industry Leaders Support Options Trading
Options are financial instruments that allow investors to speculate on the price of digital currencies using leverage or protect their portfolios.
Catherine Clay, the global head of derivatives at Cboe Global Markets, sees options as a natural complement to spot Bitcoin ETFs.
In an interview with CNBC, Clay stated, "We believe that the utility of the options, what they provide to the end investor in terms of downside hedging, risk-defined exposures into Bitcoin, really would help the end investor and the ecosystem."
Michael Sonnenshein, CEO of Grayscale, also supported the approval of exchange-traded options for spot Bitcoin ETFs, noting their usefulness for investors. He notes that options are good for retail and institutional investors, helping them better manage risks and achieve desired outcomes.
