BlackRock’s Bitcoin ETF Sees $300 Million Inflows, Breaking Trend of Low Flows
BlackRock’s Bitcoin exchange-traded fund (ETF) has gained significant momentum, accounting for 95% of the total inflow into United States spot Bitcoin ETFs on Tuesday.
The combined inflows for these ETFs exceeded $300 million, providing a substantial boost to the market.
Initial data from Farside Investors shows that BlackRock’s iShares Bitcoin Trust (IBIT) experienced a significant inflow of $290 million on May 21.
When considering all eleven ETF issuers combined, the net inflow reached $305.7 million.
This represents a reversal in the trend of zero or minimal inflows observed over the past six weeks.
BlackRock’s ETF Witnesses Increase in Inflows
The recent influx of funds into BlackRock’s ETF is the highest level since April 5, surpassing the cumulative inflows seen over the past 21 trading days.
During the volatile Bitcoin rally, spot Bitcoin ETFs have received over $1 billion in inflows in the last four trading days.
Based on the latest daily figures, BlackRock’s IBIT has accumulated a total of $16 billion in inflows since its launch, as reported by Farside Investors.
However, the official website for the product displays assets under management (AUM) of $19 billion.
This positions BlackRock’s IBIT in close competition with industry leader Grayscale, whose GBTC spot ETF has $20 billion in AUM, according to official records.
In contrast, Grayscale’s GBTC had zero inflows on May 21, extending a streak of five consecutive trading days without outflows.
In the past five days, the fund has received inflows of $72.5 billion, reversing a four-month trend of consistent outflows.
VanEck’s ETF Experiences Outflows
However, the significant inflow figure on Tuesday was accompanied by outflows as well.
The VanEck Bitcoin Trust ETF (HODL) saw an outflow of $5.9 million, while the Bitwise Bitcoin ETF (BITB) experienced an outflow of $4.2 million.
The Fidelity Wise Origin Bitcoin Fund (FBTC) observed a minor inflow of $25.8 million, while the remaining ETFs reported no significant changes.
The enthusiasm surrounding Bitcoin ETFs has been fueled by a recent increase in BTC prices, with the asset gaining 12% in the past week.
On May 21, BTC reached a six-week high of $71,600, but it subsequently dropped below the $70,000 level during early trading on May 22, currently trading at $69,444 at the time of writing.
As reported, Bitcoin has reached all-time highs against local currencies in several countries across Asia and South America.
Markus Thielen, the head of research at 10x Research, previously predicted that a breakthrough above $67,500 could potentially lead to new all-time highs.
Currently, BTC is trading at $69,000, just $3,000 away from reaching a new all-time high in U.S. dollars.
In addition to 10x Research, other analysts have also turned bullish on Bitcoin following weeks of consolidation.
Leading trading firm QCP Capital has expressed optimism about Bitcoin’s price momentum, forecasting a potential return to highs of $74,000.
In a recent note, the firm stated that it has observed significant buyers acquiring 100,000 to 120,000 BTC Calls for December 2024, indicating confidence in the cryptocurrency’s upward movement.
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