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BlackRock’s iShares Bitcoin Trust (IBIT) has reignited institutional interest in Bitcoin, registering a remarkable $528 million in inflows on Thursday. This translates to the acquisition of 5,250 BTC—nearly 12 times the daily production rate of 450 BTC—propelling Bitcoin’s price beyond the $100,000 mark. The move underscores growing confidence in cryptocurrency among institutional investors.
BlackRock Leads Institutional Bitcoin Adoption
Since its launch in 2024, BlackRock’s IBIT has become a bellwether for institutional Bitcoin adoption, with $55.69 billion in assets under management (AUM). Remarkably, the fund achieved this milestone in under a year—a feat that took BlackRock’s gold ETF two decades. On Thursday, IBIT dominated inflows, capturing 85% of the $626 million total net inflows. ARKB, managed by Ark Invest, came in second with $155 million.
This week, BlackRock also launched a Bitcoin ETF variant on the Canadian CBOE exchange, meeting soaring global demand. Rival Fidelity responded by slashing fees on its Canadian BTC ETF to 32 basis points, aligning with BlackRock’s competitive pricing strategy.
Fidelity is cutting the fee on its Canada bitcoin ETF to 32bps to match BlackRock who just launched one up there at 32bps. Both are now the cheapest in the market. US issuers bringing some terrordome action to Canada. (note the Fidelity guy is going on Reddit to answer qs) pic.twitter.com/667Lz4gCp3
— Eric Balchunas (@EricBalchunas) January 16, 2025
Bitcoin Price Surges Amid Institutional Demand
Bitcoin’s price skyrocketed past the $100,000 resistance level, trading at $101,334 as of Friday morning, with an 8% weekly gain and a $2 trillion market capitalization. On-chain metrics further bolster this bullish narrative, with Bitcoin exchange balances hitting a seven-year low, signaling a potential supply shock.
Liquidation data highlights the rally’s intensity, with $90 million liquidated in the past 24 hours—$50 million from short positions. Crypto analyst Miles Deutscher emphasized that Bitcoin must break the $102,500 level to confirm a sustained uptrend. Otherwise, the cryptocurrency could re-enter its previous range, leading to sideways movement.
Macro Trends Supporting Bitcoin Momentum
Bitcoin’s surge comes amid macroeconomic tailwinds, including a drop in December’s core CPI, boosting investor confidence. Upcoming events, such as Trump’s inauguration, are expected to further influence market sentiment.
Also Read: BlackRock’s Bitcoin Selling Spree Sparks Market Volatility: $12.4M BTC Offloaded
As institutional demand intensifies and macro factors align, Bitcoin appears poised for further growth. However, breaking key resistance levels remains critical to sustaining this bullish trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
A lifelong learner with a thirst for knowledge, I am constantly seeking to understand the intricacies of the crypto world. Through my writing, I aim to share my insights and perspectives on the latest developments in the industry. I believe that crypto has the potential to create a more inclusive and equitable financial system, and I am committed to using my writing to promote its positive impact on the world.
