BlackRock Dominates the Bitcoin ETF Market
BlackRock-owned iShares Bitcoin Trust (IBIT) continues to dominate the spot Bitcoin ETFs sector, amassing $29.3 billion in cumulative inflows since the launch of these funds earlier this year. The ETF has significantly outpaced competitors like the Grayscale Bitcoin Trust ETF, which has seen outflows of $20.3 billion during the same period.
Spot Bitcoin exchange-traded funds (ETFs) recorded another strong performance, with $1.7 billion in net inflows for the week ending November 15. This latest flow marks the sixth consecutive week of positive flows as the cryptocurrency market’s rally continues.
According to data from SoSoValue, the total BTC under management (AUM) for spot Bitcoin ETFs has now reached $95.4 billion, equivalent to 5.27% of Bitcoin’s $1.8 trillion market capitalization. This momentum has also benefited other cryptocurrency ETFs.
Spot Ether ETFs, for example, recorded $515 million in inflows over the past week, pushing their three-week total to $682 million. This underscores the growing investor confidence in digital assets beyond Bitcoin.
Bitcoin Price Hits Record Highs
The surge in ETF inflows aligns with Bitcoin’s recent price rally. The cryptocurrency surpassed $90,000 for the first time on November 12, reaching an all-time high of $92,400 the following day.
The price movement has further fueled institutional interest in Bitcoin ETFs, with BlackRock IBIT’s ETF the preferred choice among top investors. Unsurprisingly, hedge fund manager Paul Tudor Jones has become one of the top 10 holders of BlackRock’s IBIT shares, significantly increasing his position during the third quarter.
As reported in his latest 13F-HR filing, Jones now holds nearly $160 million of IBIT shares, up by $130 million in recent months. Key IBIT holders, including Goldman Sachs and Millennium Management, have also expanded their investments.
Goldman Sachs increased its ETF exposure by 71% in Q3, bringing its total holdings to $710 million.
BlackRock’s Key Role in Institutional Crypto Adoption
BlackRock’s dominance in the spot Bitcoin ETF market reflects the broader trend of institutional adoption. The firm has attracted significant inflows, bolstered by the recent listing of IBIT on CoinMarketCap, which provides investors with real-time tracking of the ETF’s value.
Analysts suggest the listing could further accelerate inflows as more investors access the fund. The investment firm’s data highlights the growing interest in regulated investment vehicles.
Since October 11, spot Bitcoin ETFs have recorded total inflows of $8.95 billion, maintaining a steady upward trajectory. BlackRock’s leading position in this market makes it a key player in enabling institutional adoption of cryptocurrencies.
BlackRock Secures Operational License in Abu Dhabi
Moreover, BlackRock has officially obtained a commercial license to operate in Abu Dhabi, expanding its reach in the United Arab Emirates. The approval underscores Abu Dhabi’s reputation as a global financial centre attracting international FinTech firms.
BlackRock is also pursuing a license to operate in the Abu Dhabi Global Market (ADGM), a leading financial hub hosting notable crypto and blockchain entities like Blockdaemon, M2, and Laser Digital. According to Charles Hatami, the company’s Middle East head, BlackRock’s primary focus in Abu Dhabi is AI infrastructure and private market investments.
This move is in line with Abu Dhabi’s expanding AI landscape. Earlier this year, Microsoft invested $1.6 billion in G42, an Abu Dhabi-based AI conglomerate, signaling the emirate’s global ambitions in AI development.
Additionally, Microsoft unveiled plans to establish two AI centers in Abu Dhabi to support industrial advancements.
Strategic Expansion in a Thriving Region
BlackRock’s expansion in Abu Dhabi comes as the UAE solidifies its standing in digital finance. In August, the country ranked third in a global crypto adoption index by Henley & Partners.
The firm’s commercial license aligns with its strategy of tapping into emerging markets while navigating the intersection of advanced technologies and traditional finance. With the new permit, BlackRock joins a growing list of financial and technology firms, deepening their roots in the UAE.
The company’s operations in Abu Dhabi will complement its global ambitions in technology and finance, further cementing its leading position in emerging sectors.
