U.S.-listed Bitcoin ETFs have seen approximately $1 billion of inflows over four trading days this week. The central asset in this boom is the BlackRock iShares Bitcoin Trust (IBIT), which has concentrated the most substantial portion of funds. The advances are even though the price of Bitcoin has been on the decline. Demand for digital assets by institutions, however, has been high, signaling increased faith in crypto-linked financial products.

BlackRock’s IBIT Drives the Majority of Bitcoin ETF Inflows

BlackRock’s IBIT has contributed over $900 million to the $970 million in total inflows reported this week. According to Farside Investors, this represents more than 90% of all inflows among U.S. spot Bitcoin ETF issuers. Data from blockchain analytics firm Santiment confirms this increase in institutional allocations.

On Thursday alone, IBIT recorded an inflow of 2,681 BTC, valued at $288 million. The fund also recorded a daily traded amount of 2.2 billion dollars. This now gives it a total assets under management (AUM) of over $73 billion compared to $70 billion earlier in the week. At the moment, IBIT owns 666,842 BTC, and the price of its shares is consolidating at $60.

Other ETF Issuers See Withdrawals Despite Rising Demand

As IBIT reported a record level of activity, other issuers reported withdrawals. FBTC, an overweight fund offered by Fidelity, has had 197 million in outflows, and Ark Invest ARK had 10.7 million in exits on Thursday. This discrepancy in the flows suggests that investors could be positioning in their dominant ETFs, which have robust institutional sponsorship.

The inflows follow a week of outflows within the U.S.-listed spot Bitcoin ETFs. Institutional interest is back along with positive flows this week, although Bitcoin is trading in a volatile environment. Participants in the market still monitor fund flow direction as an indicator of investor sentiment.

Bitcoin ETFs Set to Overtake Gold as Preferred Institutional Asset

According to Bloomberg ETF strategist Eric Balchunas, Bitcoin ETFs could soon surpass gold ETFs in AUM. Balchunas stated, “No one is talking about gold,” suggesting that the market’s focus is now shifting toward digital assets. He projects that Bitcoin ETF AUM could eventually exceed $1 trillion.

BlackRock’s IBIT is now competing with the largest traditional ETFs in terms of daily volume and growth pace. The fund’s performance since launch, with over 150% investor returns, has placed it among the top-performing exchange-traded products.

Bitcoin Price Volatility Fails to Deter Institutional Participation

Bitcoin has felt the pressure on its price due to geopolitical tensions despite the inflows. The news of the Israeli military action against Iran caused more than $1.1 billion in crypto liquidations. This had a temporary downward pressure on the price of BTC. There is no effect though on the interest of investors in regulated investment vehicles.

Institutional confidence is founded upon the long-term value of Bitcoin as a hedge against inflation and fiat devaluation. This sentiment is confirmed by on-chain data offered by Messari and Glassnode, whereby the accumulation by funds and investment firms has been rising. These inflows imply a plan to maintain an exposure irrespective of the short-term market fluctuations.

Bitcoin ETFs, specifically IBIT remain one of the largest entry points in terms of institutional adoption. The speed of rising inflows even amid declining prices supports the idea of the transfer of capital base that was invested in traditional assets to the digital ones.