BlackRock’s iShares Bitcoin ETF (IBIT) has achieved a significant milestone, surpassing $23 billion in total inflows since its launch. This impressive figure positions IBIT among the top three ETFs by inflows for 2024, having overtaken the VIT ETF.
Milestone Achievement
The momentum for BlackRock’s Bitcoin ETF continues to build, with recent data revealing that the U.S. Bitcoin ETF recorded more than $2 billion in inflows last week alone. As of October 21, the total inflows reached $294 million for the day, with IBIT leading the pack. Notably, on the previous day, IBIT accounted for $329 million in inflows, while other ETFs either stagnated or faced net outflows.
In just six trading sessions, IBIT has garnered a remarkable $1.5 billion, according to Bloomberg ETF strategist Eric Balchunas. This surge has been hailed as the best week for the BlackRock Bitcoin ETF, solidifying its position among the elite top three ETFs by inflows this year. Moreover, IBIT’s assets under management have now crossed $26 billion, placing it in the top 2% of all ETFs.
Bitcoin Price Dynamics
Despite the robust inflows into the ETF, Bitcoin’s price has not reflected this enthusiasm, struggling to break past the critical resistance level of $69,000. Currently, Bitcoin is trading at approximately $67,528.79, down 2.29% at press time. However, trading volume has surged by 60%, reaching $37 billion, indicating heightened activity in the market.
Market analysts at Bitfinex have pointed out that the inflows from ETFs may have a delayed effect on Bitcoin’s price. They noted, “ETF inflows can have a muted impact for a few days, and then the market reverses lower once the aggression from spot market buyers fades.”
The Trump Factor
The potential influence of political dynamics, particularly the rising odds of Donald Trump’s victory in the upcoming election, has also been identified as a driving force behind the current institutional demand for Bitcoin. According to Polymarket data, Trump’s odds of winning have increased to 63.5%, compared to Kamala Harris.
Ryan Lee, Chief Analyst at Bitget Research, emphasized that the continuous inflows into IBIT over six consecutive days indicate robust institutional interest. He attributed this momentum to both Trump’s increasing election prospects and a technical rebound in Bitcoin’s price. Trump’s known support for Bitcoin is viewed as a positive signal for the cryptocurrency market.
Future Outlook
Additionally, the recent approval of Bitcoin ETF options by the SEC is expected to enhance liquidity within these ETFs, which could further encourage sustainable inflows. QCP Capital noted, “With the SEC’s approval of ETF options, we believe this will provide the ETF with the needed liquidity to attract sustainable inflows.”
As the market continues to evolve, the implications of these developments for both Bitcoin’s price and institutional investment strategies will be closely monitored by stakeholders.
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