Institutional demand for Bitcoin continues to rise as BlackRock’s iShares Bitcoin ETF (IBIT) has hit a major milestone. Over the past week, inflows into Bitcoin ETFs have accelerated, with BlackRock’s IBIT leading the pack, surpassing $23 billion in total inflows since its inception earlier in 2024. This achievement places IBIT among the top three ETFs launched this year by inflows, underscoring the growing institutional appetite for the premier cryptocurrency.
BlackRock Bitcoin ETF Sets New Record
As of Monday, October 21, BlackRock’s Bitcoin ETF recorded an inflow of $294 million, significantly outpacing other ETFs. Remarkably, while IBIT added $329 million in inflows on the same day, competing ETFs either saw no inflows or experienced net outflows, highlighting BlackRock’s dominance in the market.
Over the last six trading sessions, IBIT has raked in $1.5 billion in inflows. Bloomberg ETF strategist Eric Balchunas emphasized that this was the best week for IBIT since its launch, cementing its place among the top three ETFs by inflows in 2024. Currently, IBIT’s assets under management exceed $26 billion, ranking it in the top 2% of all ETFs globally. This surge in institutional interest is a clear signal of the broader adoption of Bitcoin as a mainstream investment asset.
Bitcoin Price Stalls Despite Record Inflows
Despite these record-breaking inflows, Bitcoin’s price has struggled to break through key resistance levels. At the time of writing, Bitcoin is trading at $67,528.79, down 2.29%. The cryptocurrency’s price has been unable to surpass the $69,000 resistance, even as daily trading volume surged by 60% to $37 billion. This disconnect between inflows and price movement suggests that institutional investments are focused on long-term exposure rather than immediate market impact.
As institutional interest in Bitcoin ETFs grows, some analysts speculate that the upcoming U.S. presidential election may be a contributing factor. According to Polymarket data, Donald Trump’s odds of winning the 2024 election have risen to 63.5%, outpacing Vice President Kamala Harris. This “Trump trade” could be influencing the surge in Bitcoin ETF inflows, as investors may be positioning themselves in anticipation of a favorable regulatory environment under a potential Trump administration.
Ryan Lee, Chief Analyst at Bitget Research, commented on the trend, stating, “The consistent inflows into Bitcoin ETFs over the past six trading sessions are a strong indicator of institutional confidence in the asset class.” Lee added that this momentum could continue, especially with the U.S. Securities and Exchange Commission’s (SEC) recent approval of Bitcoin ETF options.
Also Read: Bitcoin Boom – BlackRock Invests $684 Million In 48 Hours, Predicts $30 Trillion Market!
SEC Approval Could Fuel More Inflows
The SEC’s approval of Bitcoin ETF options is expected to further enhance liquidity in the market. QCP Capital noted, “With the SEC’s approval of ETF options, we believe this will provide the ETF with the needed liquidity to attract sustainable inflows.” This development could solidify Bitcoin’s status as a key asset in institutional portfolios, providing more avenues for sophisticated trading strategies and risk management.
BlackRock’s Bitcoin ETF is setting new benchmarks in the financial world, reflecting the increasing demand for crypto assets among institutional investors. While Bitcoin’s price remains volatile, the steady inflows into ETFs like IBIT suggest that big players are here for the long haul. As regulatory clarity improves and more options become available, the momentum behind Bitcoin ETFs could continue to grow, potentially pushing the cryptocurrency to new heights.
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.
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