BlackRock’s Bitcoin ETF Sees Huge Inflows as BTC Price Soars
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BlackRock’s spot Bitcoin exchange-traded fund (ETF) called IBIT has seen a big jump in investments over the past week. An ETF is a type of investment that trades on a stock exchange and tracks the price of an asset like Bitcoin.
According to data from Farside Investors, IBIT had an inflow of over $290 million on Tuesday, May 21. This was the highest one-day inflow so far in May and the biggest since April. IBIT’s total investments have now grown to more than $19 billion.
The big inflows come as the price of Bitcoin has rallied above $71,000 for the first time since early April. Investors seem to be getting excited about Bitcoin again after a slower period in early May.
Other Bitcoin ETFs in the U.S. have also seen more activity and money coming in during the past week. Together, they had nearly $300 million in net inflows on Tuesday. Only a couple of Bitcoin ETFs had money flowing out instead. These included the Valkyrie Bitcoin Fund ($4.2 million) and the VanEck Bitcoin Trust ($5.9 million).
Bitcoin ETF Flow (US$ million) – 2024-05-21
TOTAL NET FLOW: 305.7
(Provisional data)IBIT: 290
FBTC: 25.8
BITB: -4.2
ARKB: 0
BTCO: 0
EZBC: 0
BRRR: 0
HODL: -5.9
BTCW: 0
GBTC: 0
DEFI: 0For all the data & disclaimers visit:https://t.co/4ISlrCgZdk
— Farside Investors (@FarsideUK) May 22, 2024
Revived Bullish Sentiment Is Pushing Bitcoin ETF Inflows
The jump in inflows comes primarily amid hopes that an ETF that directly holds ether could get approved soon. Plus, Donald Trump, who is running for president again, recently shared a positive view on cryptocurrencies.
However, one Bitcoin ETF that has struggled is Grayscale’s GBTC. It had been losing money most days since January (over $17.6 billion). But this week, GBTC has gone five days without any net outflows, which is an improvement.
The increased activity and inflows for IBIT and other Bitcoin ETFs show that institutional investors are gaining more confidence in Bitcoin. BlackRock launching IBIT in January was a major milestone, as BlackRock is the world’s largest asset manager.
As more big players like BlackRock enter the Bitcoin space and create regulated investment products, it helps Bitcoin mature and become seen as a legitimate asset class. The recent price rally back above $70,000 could attract even more institutional money in the weeks ahead if Bitcoin can sustain this level or head higher.
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