BlackRocks Bitcoin ETF notches 2-week high inflow as BTC nears $112K

BlackRock’s Bitcoin ETF Sees Massive Inflows as BTC Price Surges

The world of Bitcoin ETFs is heating up, with BlackRock’s IBIT leading the charge. As reported by Cointelegraph, recent data shows a significant surge in inflows into these investment vehicles, coinciding with Bitcoin’s impressive price rally.

IBIT’s Record-Breaking Day

• BlackRock’s iShares Bitcoin Trust (IBIT) experienced a net inflow of $530.6 million on May 21, marking its largest single-day inflow in two weeks.
• This surge nearly matched the $531.2 million inflow recorded on May 5.
• Notably, IBIT has maintained a consistent inflow streak since April 9.
• The ETF absorbed over ten times the amount of Bitcoin mined in the same 24-hour period, acquiring 4,931 BTC compared to the 450 BTC mined.

Overall ETF Performance

• The total inflow across all 11 spot Bitcoin ETFs reached $607.1 million.
• The Fidelity Wise Origin Bitcoin Fund (FBTC) followed with $23.5 million in inflows.

Market Analyst Insights

Bloomberg ETF analyst Eric Balchunas described the ETF inflows as a “classic feeding frenzy,” attributing it to Bitcoin’s price rally, which approached $112,000 in early May 22 trading.

Balchunas noted that ETF trading volumes reached levels last seen in January, around Bitcoin’s previous all-time high. He anticipates continued elevated trading volumes for Bitcoin ETFs.

Bitcoin’s Price Surge

• Bitcoin reached a new all-time high above $110,000 in late May 2.
• The rally continued, reaching just under $111,897 on Coinbase.

Expert Opinions on Continued Inflows

Jeff Mei, operations chief at the crypto exchange BTSE, noted the crowding into Bitcoin ETFs, which saw $3.6 billion in net inflows in May. He anticipates this trend to continue as companies tap public markets for more capital, potentially accelerating if the Federal Reserve cuts interest rates.

Volatility Ahead?

Jupiter Zheng, HashKey Capital partner, anticipates increased volatility as Bitcoin surpasses $110,000, entering uncharted price discovery territory. He suggests that unstable geopolitical and macroeconomic factors are leading investors to consider Bitcoin’s long-term value.

In Conclusion

The recent surge in Bitcoin ETF inflows, particularly into BlackRock’s IBIT, reflects growing investor interest in cryptocurrency. Fueled by Bitcoin’s price rally, this trend is expected to continue, although potential volatility remains a factor to watch. As crypto regulation evolves, these investment vehicles may see even greater adoption.