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BlackRock’s Bitcoin ETF fund sees $300 million worth of inflows, reversing trend of low flows

The success of the BlackRock ETF may also signal positive developments in the broader cryptocurrency market, attracting more institutional investors.

Date: 2024-05-22 Author: Marek Stiller
BlackRock’s Bitcoin ETF fund sees $300 million worth of inflows, reversing trend of low flows

BlackRock’s Bitcoin Exchange Traded Fund (ETF) generated significant popularity, accounting for 95% of total inflows into U.S. Bitcoin ETFs on Tuesday. Total inflows into these ETFs exceeded $300 million, providing a significant boost to the market.

Preliminary data from Farside Investors shows that BlackRock’s iShares Bitcoin Trust (IBIT) saw a significant inflow of $290 million on May 21. Taking all eleven ETF issuers together, the net inflow was $305.7 million.

This marks a reversal of the trend of zero or minimal inflows observed over the past six weeks. The recent inflows into the BlackRock ETF fund represent the highest level since April 5, eclipsing the cumulative inflows recorded over the past 21 trading days.

Against the backdrop of Bitcoin’s volatile growth, inflows worth more than $1 billion have been recorded in the Bitcoin ETF market over the past four trading days. Taking the most recent daily figures, according to Farside Investors, BlackRock has raised a total of $16 billion in inflows since the launch of IBIT.

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However, the product’s official website displays assets under management (AUM) of $19 billion. This places IBIT BlackRock in close proximity to industry leader Grayscale, whose GBTC ETF fund boasts AUM of $20 billion, according to official data.

On the other hand, Grayscale’s GBTC recorded zero inflows on May 21, extending a streak of five consecutive trading days without outflows. Over the past five days, $72.5 billion has flowed into the fund , reversing a four-month trend characterized by steady outflows.

VanEck’s ETF sees outflows

The VanEck Bitcoin Trust ET F (HODL) saw outflows of $5.9 million, while the Bitwise Bitcoin ETF (BITB) saw outflows of $4.2 million. The Fidelity Wise Origin Bitcoin Fund (FBTC) saw a small inflow of $25.8 million, while the other ETFs saw no significant changes.

Enthusiasm around bitcoin ETFs has been fueled by the recent rise in BTC prices, with the asset rising 12% over the past week.

on May 21, BTC reached its highest level in six weeks at $71,600, but then fell below the $70,000 level during early trading on May 22 and now stands at $69,444 at the time of this writing.

As we reported, Bitcoin has reached an all-time high against local currencies in several Asian and South American countries . Markus Thielen, head of research at 10x Research, previously predicted that a breakout above $67,500 could potentially lead to new all-time records.

BTC is currently trading at $69,000, just $3,000 away from reaching a new all-time record high in U.S. dollars. In addition to 10x Research, some other analysts have also become optimistic about Bitcoin after the week-long consolidation.

Leading trading firm QCP Capital expressed optimism about Bitcoin’s price momentum, forecasting a potential return to the $74,000 maximums.

In a recent note, the firm said it has observed that significant buyers have acquired between 100,000 and 120,000 BTC options for December 2024, indicating confidence in the cryptocurrency’s rising value.

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Marek Stiller
Marek Stiller
Founder of the "Cryptocurrency for Beginners" channel on YouTube. He collaborates with Łukasz to form the Arena Trading group, while at the same time being passionate about blockchain technology. His knowledge and experience in the cryptocurrency industry help beginner investors better understand this dynamic market.
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