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27/08/24
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BlackRock’s Bitcoin ETF Sees Surge in Inflows Amidst Price Dip
BlackRock’s Bitcoin exchange-traded fund (ETF) experienced a significant boost, recording its largest daily net inflow in over a month. This comes as investors appeared to seize the opportunity presented by Bitcoin’s minor retreat just below the $64,000 level after a strong rally in the preceding week.
On August 26, the iShares Bitcoin Trust ETF (IBIT) noted a net inflow totaling $224.1 million, marking its highest inflow since July 22, when it had recorded $526.7 million. At that time, Bitcoin had reached a daily peak of $67,534. However, in the past 24 hours, Bitcoin’s price declined nearly 2%, settling at $63,031 from a high of $64,121, following a robust weekly surge that saw its price increase from a low of $58,756 to a peak of $64,475 on August 25.
The inflows directed towards IBIT contributed to a collective net inflow of $202.6 million among 11 U.S. spot Bitcoin ETFs. Despite this growth, several established funds, including those from Bitwise, Fidelity, and VanEck, faced combined outflows totaling $32.1 million. The Franklin Bitcoin ETF and the WisdomTree Bitcoin Fund were the only other funds to witness inflows, attracting $5.5 million and $5.1 million, respectively.
In contrast, U.S.-based Ether (ETH) ETFs experienced joint net outflows amounting to $13.2 million, while Ethereum’s price also dipped by 2.22% over the past day, settling at $2,686. The inflows seen in IBIT reflect a strong performance in the cryptocurrency investment landscape, as indicated by data showing that Bitcoin investment products saw significant inflows of $543 million last week, with IBIT leading the way at $318 million. This buying momentum appears to be driven by market anticipation regarding a potential interest rate cut by the U.S. Federal Reserve, as suggested during recent comments by its chair.
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