Coin Edition -
- BlackRock’s Bitcoin ETF starts with a $111 million inflow, with the remaining $889 million expected tonight.
- BlackRock’s ETF sees a premium of 16bps, while Fidelity recorded a negative value.
- New Bitcoin ETFs eye a combined $650 million inflow, but several ETFs have not posted their numbers.
The inflow for iShares Bitcoin Trust (IBIT), specifically BlackRock’s Bitcoin spot ETF shares, has been confirmed to reach $111 million. In a recent update on X, Eric Balchunas, a Senior ETF Analyst at Bloomberg, called the crypto community’s attention to the fund inflows.
According to Balchunas, current data confirmed the $111 million inflow out of the expected $1 billion. He noted that the data is currently delayed and that the rest of the staggering $1 billion in volume is expected to be revealed in tonight’s flow.
$IBIT inflow tame at $111m, but the data is delayed, rest of the $1b in volume will show up in tonight's flow #. Also check out the % prem at 16bps. Fidelity was -4bps. Rest tight too. That's great, this was a worry of cash creates (wide prems) but APs, mkt makers crushed it. pic.twitter.com/RqtY35pgoq— Eric Balchunas (@EricBalchunas) January 12, 2024
One notable aspect of the currently available data, which the ETF expert urged attention to, was the percentage premium. iShares Bitcoin Trust’s premium is 16 basis points (bps) or 0.159%.
This premium reflects the percentage of the total IBIT inflow over the underlying Bitcoin’s net asset value (NAV). In other words, a 16bps premium means that the total price of all Bitcoin held in IBITs is roughly 0.16% higher than the actual value of all those Bitcoins combined. In comparison, Fidelity’s Bitcoin spot ETF share was reported to have a negative 4 bps premium.
Overall, Balchunas sees the developments as a positive sign, particularly in addressing concerns about cash creating a wide premium. He commended authorized participants (APs) and market makers for effectively managing this potential issue, ensuring a more stable environment for the ETFs.
Also, the Bloomberg ETF analyst stated that several ETFs have not posted their numbers. Preliminary estimates suggest that the combined inflow for these new entrants could be in the ballpark of $650 million.
Furthermore, Balchunas suggested that Grayscale Bitcoin Trust (GBTC) could potentially “take away from” the inflows for the new ETFs, given its position as already a fully grown investment product at launch. Nonetheless, the numbers are not yet due to settlement delays.
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