Investors in BlackRock’s Bitcoin ETF poured a record amount of money into the fund on the day Bitcoin reached a new all-time high before undergoing a correction of up to 10%. On March 5th, BlackRock’s iShares Bitcoin ETF (IBIT) received $788 million in net inflows, marking the highest daily influx in the fund’s history as traders capitalized on the market dip.
According to data from SoSoValue, the IBIT ETF has amassed over $9 billion in total inflows and currently manages nearly $12 billion in assets under management (AUM). The AUM is backed by the acquisition of over 183,000 Bitcoin (BTC) by BlackRock since January 11th, when trading officially commenced.
BlackRock’s largest daily inflow also resulted in its biggest BTC acquisition, with nearly 12,600 Bitcoin purchased in a single day. This surpasses the previous highest purchase on February 28th when the fund bought over 10,140 BTC.
Reports indicate that BlackRock intends to invest in additional BTC ETFs through its Strategic Income Opportunities Fund, as disclosed in a filing with the U.S. SEC on March 4th, shortly after announcing its Bitcoin ETF plans in Brazil.
While BlackRock’s IBIT witnessed record inflows, Grayscale’s GBTC experienced outflows, with the converted ETF shedding $332 million. However, all 10 spot BTC ETFs recorded $648 million in net inflows, despite investors liquidating over $9 billion from GBTC.
Legacy financial institutions such as Bank of America’s Merrill Lynch, Citi Bank, UBS, and Wells Fargo have started allowing select clients to purchase spot Bitcoin ETFs in response to growing customer demand, despite initially shunning the product upon its launch. This comes as spot Bitcoin ETFs accumulate over $20 billion in AUM, excluding Grayscale’s GBTC, accounting for nearly 4% of BTC’s current supply, according to data from a Dune Analytics dashboard.