BlackRock’s spot Bitcoin exchange-traded fund (ETF) has seen a surge in inflows, accounting for 95% of the total inflow into United States spot Bitcoin ETFs on Tuesday. The combined inflows for these ETFs exceeded $300 million, marking a significant boost for the market. Preliminary data from Farside Investors shows that BlackRock’s iShares Bitcoin Trust (IBIT) received an inflow of $290 million on May 21, reversing the trend of zero or minimal inflows observed over the past six weeks. This recent influx of funds into BlackRock’s ETF is the highest level since April 5, with spot Bitcoin ETFs experiencing over $1 billion in inflows in the past four trading days.
BlackRock’s IBIT has accumulated a total of $16 billion in inflows since its launch, as reported by Farside Investors, approaching industry leader Grayscale’s GBTC spot ETF, which boasts $20 billion in assets under management (AUM). Grayscale’s GBTC recorded zero inflows on May 21, marking a reversal from previous outflows in the past four months. In contrast, VanEck’s Bitcoin Trust ETF (HODL) experienced an outflow of $5.9 million, while the Bitwise Bitcoin ETF (BITB) saw an outflow of $4.2 million. The Fidelity Wise Origin Bitcoin Fund (FBTC) saw a minor inflow of $25.8 million, with other ETFs reporting no significant changes in inflows or outflows.
The enthusiasm surrounding Bitcoin ETFs has been fueled by a recent uptick in BTC prices, with the asset gaining 12% over the past week. Bitcoin reached a six-week high of $71,600 on May 21 but subsequently dipped below $70,000 during early trading on May 22, currently trading at $69,444. Bitcoin has achieved all-time highs against local currencies in several countries across Asia and South America, and analysts like Markus Thielen from 10x Research predict that a breakthrough above $67,500 could 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.
Some analysts, including QCP Capital, have turned bullish on Bitcoin following weeks-long consolidation. QCP Capital has expressed optimism about Bitcoin’s price momentum, forecasting a potential return to highs of $74,000. The firm has observed substantial buyers acquiring 100,000 to 120,000 BTC Calls for December 2024, indicating confidence in the upward movement of the cryptocurrency. Overall, the current market trends in Bitcoin ETF inflows, BTC price performance, and analyst predictions point to a positive outlook for the cryptocurrency and its investment vehicles. Investors are closely monitoring these developments to capitalize on potential opportunities in the evolving Bitcoin market.
