Investors in BlackRock’s iShares Bitcoin Trust (IBIT) seized an opportunity on Oct. 21, sending $329 million in inflows to the fund after Bitcoin dropped 3%. This marked the third time in just four trading days that the IBIT recorded over $300 million in inflows, solidifying its dominance in the U.S. spot Bitcoin ETF market.
According to Farside Investors, BlackRock’s IBIT remains the leading spot Bitcoin ETF, crossing $23 billion in total net inflows. The fund’s impressive performance has caught the attention of analysts like Bloomberg’s Eric Balchunas, who highlighted that IBIT has posted the third-largest ETF inflows in 2024, trailing only the Vanguard and BlackRock S&P 500 index funds (VOO and IVV).
On the same day, Bitcoin’s price fell 3.25% to a low of $66,975 after failing to break the $70,000 resistance level. The drop cut into a 10-day price surge that saw Bitcoin rise from $59,000 to $69,130. Despite the price pullback, traders and analysts are unfazed. Crypto trader Jelle commented, “Market selling off slightly today, as expected – and that’s okay.” Another trader, Emperor, speculated that a further dip to the $62,000 range could be on the horizon, following Bitcoin’s highest weekly close in five months on Oct. 20.
The IBIT’s dominance in the spot Bitcoin ETF space comes at a time when most other funds have struggled to attract inflows. The Fidelity Wise Origin Bitcoin Fund (FBTC) was the only other U.S. spot Bitcoin ETF to record inflows on Oct. 21, adding $5.9 million. In contrast, several other Bitcoin ETFs saw zero or negative flows.
Bitcoin’s recent surge, which peaked at $69,130, was largely driven by speculation surrounding the upcoming U.S. elections. However, the price pullback on Oct. 21 indicates that the market is still navigating its way through significant resistance levels. Analysts believe that this volatility could continue, with some predicting further declines before Bitcoin makes another attempt to breach the $70,000 mark.
Meanwhile, total net inflows across all U.S. spot Bitcoin ETFs have reached $21.2 billion, with more than $20 billion flowing out of Grayscale’s Bitcoin Trust (GBTC) as investors shift toward newly approved spot ETFs like BlackRock’s IBIT. The success of BlackRock’s ETF underscores the growing institutional interest in Bitcoin, despite the price fluctuations and broader market uncertainties.
Also Read: Crypto Volatility Looms – $5.2B In Bitcoin And Ethereum Options Set To Expire This Week
As of now, Bitcoin is trading at $67,360, down 2.2% over the last 24 hours, but investor confidence in the long-term value of the cryptocurrency remains strong. With BlackRock continuing to lead the charge, the landscape for Bitcoin ETFs looks poised for further growth.
The SEC recently approved options trading for BlackRock’s spot Bitcoin ETF, signaling increased interest and market maturation for cryptocurrency investment products.
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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