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BlackRock Bitcoin ETF Inflow Explodes to Nearly $1 Billion in a Day
BlackRock’s iShares Bitcoin Trust (IBIT) has just posted one of its biggest days since launch, pulling in nearly $970 million in a single day. The massive inflow on Monday marks a powerful comeback in investor interest, particularly among institutions looking to add Bitcoin to their portfolios.
Nate Geraci took to Twitter to share the news, noting that it is “Nearly *$1bil* into iShares Bitcoin ETF today… 2nd largest inflow since Jan 2024 inception. I still remember when there was ‘no demand’.”
It’s worth noting that IBIT did not have the same level of success as its peers. Other Bitcoin ETFs, such as Fidelity’s FBTC and Grayscale’s GBTC, struggled to attract investors. In fact, Fidelity’s product posted about $87 million in outflows, while Grayscale’s saw a loss of $42 million. Ark Invest’s ARKB had the roughest day, with over $226 million leaving the fund.
This divergence suggests that investors are returning to the crypto market, but they’re being highly selective and favoring only the most popular and reliable options – in this case, BlackRock. The spike in IBIT inflows also coincides with a broader uptick in Bitcoin sentiment. As stock markets wobble and economic uncertainty builds, many investors are turning to Bitcoin as a hedge much like gold. Proponents of the cryptocurrency argue that its relatively steady performance in recent weeks makes it an attractive place to park capital during turbulent times.
The news comes as investors begin to regain confidence in the market. James Toledano, Chief Operating Officer at Unity Wallet, notes that easing fears around tariffs and a more optimistic Federal Reserve outlook have helped lift investor confidence. Interestingly, he also pointed out that former President Trump’s recent silence on crypto, a departure from his typically market-moving comments, may have contributed to this improved sentiment – although it’s difficult to directly connect the two.
It is important to note that BlackRock’s IBIT belongs to a new generation of spot Bitcoin ETFs that debuted in January. These funds allow both individual and institutional investors to access Bitcoin through traditional market channels. As the broader spot ETF market continues to find its footing, BlackRock’s overwhelming inflows demonstrate where momentum is clearly building.
Furthermore, it is interesting to observe the gap between IBIT’s holdings and those of MicroStrategy narrowing rapidly. At present, IBIT holds 573,869 BTC compared to MicroStrategy’s 553,555 BTC. With a mere difference of 20,000 BTC now, the competition for the largest institutional Bitcoin treasury has never been more intense.
This surge in inflows raises important questions about the future trajectory of the crypto market and the institutions that play a significant role within it.
Source: https://coinpedia.org/news/blackrock-bitcoin-etf-inflow-explodes-to-nearly-1-billion-in-a-day/
