BlackRock Bitcoin ETF leapfrogs ‘cash vacuum cleaners’ with new inflow record

BlackRock’s Bitcoin spot exchange-traded fund keeps breaking records.

The ETF has now seen 71 consecutive days of inflows. A laudable streak, according to Bloomberg Intelligence ETF analyst Eric Balchunas.

The fund has passed the Global Jets ETF, as well as Vanguard’s bond market ETF and developed-markets ETF — funds that Balchunas described as “one hit wonders” and “cash vacuum cleaners.”

The streak puts BlackRock’s Bitcoin ETF among the top 10 funds of all time by yet another measure. But there’s “a lot of mountain still left to climb” to get to the number one spot, Balchunas said.

The longest inflow streak ever recorded by an ETF was 160 days, attained by JPMorgan’s Equity Premium Income ETF.

With $18.24 billion in assets, BlackRock’s Bitcoin fund is already among the top 3% of all ETFs ever launched.

The ETF’s success can be attributed to institutions gaining exposure to Bitcoin little by little. Bitcoin is not a massive chunk of these firms’ strategies. Instead, it’s more like “hot sauce” on top of wider portfolios, Balchunas said.

“Shows that most of the bites are nibbles but there are a lot of fish,” he added.

But not all of BlackRock’s crypto ventures have been met with such immediate success. BlackRock’s tokenised fund, BUIDL, launched on the Ethereum blockchain on March 20, has attracted only a handful of investors so far.

Even though BUIDL surged 200% in a matter of weeks, onchain data shows most of the fund’s assets have been split up among 11 wallets.

Tom Carreras is a markets correspondent at DL News. Got a tip about BlackRock, Bitcoin, or ETFs? Reach out at tcarreras@dlnews.com