BlackRock’s Bitcoin exchange-traded fund (ETF), known as IBIT, is now leading the way in the cryptocurrency investment world. It has surpassed the combined value of over 50 regional ETFs across Europe.
Some of these European funds have been active for more than 20 years, but they are struggling to keep up with the rapid rise of IBIT.
Launched in January, IBIT has grown remarkably fast. It now holds nearly half of all Bitcoin ETF assets, making it the largest in the sector.
It has even overtaken BlackRock’s gold-based ETF, which was previously one of its top-performing funds. This rise shows a major shift in how financial institutions view cryptocurrency.
In November, Bitcoin ETFs saw a record-breaking wave of investments. Billions were poured into these funds, and BlackRock’s IBIT was responsible for most of these inflows.
This trend continued into December, where BlackRock remained the biggest buyer of Bitcoin among ETF providers.
By comparison, European ETFs are falling behind. Analysts say this is due to stricter regulations in Europe, such as discussions about setting price controls for Bitcoin.
On the other hand, the US market has embraced cryptocurrency more enthusiastically, with companies like BlackRock leading the charge.
Bitcoin spot ETFs attract steady investments
Bitcoin spot ETFs are becoming a favourite among institutional investors. These funds allow people to invest directly in Bitcoin without needing to own the cryptocurrency themselves.
On 10 December, Bitcoin spot ETFs saw a massive net inflow of $440 million. This marked nine consecutive days of steady investments.
BlackRock’s IBIT ETF stood out, bringing in $296 million in a single day. Fidelity’s FBTC ETF followed closely behind, attracting $210 million.
Analysts at Sosovalue highlighted this trend, calling it a sign of growing trust in Bitcoin ETFs as stable and reliable investment tools.
Ethereum spot ETFs are also gaining popularity. On the same day, they recorded a net inflow of $306 million, marking 12 straight days of growth.
Fidelity’s FESH ETF led with $202 million in daily inflows, while BlackRock’s ETHA ETF brought in $81.7 million.
These numbers show that Ethereum, like Bitcoin, is gaining attention as a solid investment option for institutions.
Bitcoin’s resilience in a challenging market
Bitcoin’s ($BTC) price is currently holding steady around $97,000 after briefly reaching and retreating from the $100,000 mark.
While the market volume has dipped slightly, the steady inflows into Bitcoin ETFs suggest that institutional investors remain confident in its long-term potential.
The cryptocurrency’s price has strong support above the 26-day Exponential Moving Average (EMA), which acts as a safety net.
Analysts say this could be a launching point for future price rallies. However, Bitcoin faces challenges breaking past the $100,000 resistance level. Profit-taking and pressure from overly leveraged positions are slowing its progress.
Despite these hurdles, Bitcoin’s fundamentals remain strong. Institutional investors are showing steady interest, and on-chain activity is robust. These factors could pave the way for Bitcoin to break through the $100,000 barrier in the near future.
Even if the market faces short-term setbacks, Bitcoin appears well-supported. Key levels, such as $94,000, provide a safety buffer.
As global economic uncertainties push more investors toward decentralised assets, Bitcoin is cementing its role as a trusted option for institutional portfolios.
A shift in institutional investment
The growing popularity of Bitcoin and Ethereum spot ETFs highlights a shift in how institutions view cryptocurrency.
For years, many traditional investors avoided digital assets due to concerns about volatility and regulation. Now, the steady performance of ETFs like IBIT and FESH is changing that perspective.
Bitcoin’s dominance in the ETF market shows that it is no longer just a speculative asset. It is becoming a key part of institutional investment strategies.
Firms like BlackRock and Fidelity are leading this transformation, demonstrating how crypto can fit into diversified portfolios.
As the cryptocurrency market evolves, the success of Bitcoin and Ethereum ETFs could encourage more financial institutions to join the trend.
While challenges remain, such as regulatory uncertainty and market resistance, the growing inflows into these funds suggest that the future of cryptocurrency investment is bright.
With strong backing from institutions and robust market activity, Bitcoin’s next milestone could be just around the corner.
Whether it’s breaking through $100,000 or solidifying its role as a mainstream investment, Bitcoin continues to prove its staying power in the financial world.
