BlackRock’s spot Bitcoin exchange-traded fund (ETF) has seen a significant uptick 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 substantial boost for the market. Preliminary data from Farside Investors shows that BlackRock’s iShares Bitcoin Trust (IBIT) experienced a substantial inflow of $290 million on May 21, reversing the trend of zero or minimal inflows observed over the previous six weeks. In total, all eleven ETF issuers combined saw a net inflow of $305.7 million, with BlackRock’s ETF leading the way.
The recent influx of funds into BlackRock’s ETF is the highest level since April 5, surpassing the cumulative inflows seen over the past 21 trading days. Amid a volatile Bitcoin rally, spot Bitcoin ETFs have witnessed over $1 billion in inflows in the past four trading days. As per the latest daily figures, BlackRock’s IBIT has garnered a total of $16 billion in inflows since its launch, positioning it in close proximity to industry leader Grayscale. However, Grayscale’s GBTC spot ETF saw zero inflows on May 21, extending a streak of five consecutive trading days without outflows. Within the past five days, the fund has attracted inflows of $72.5 billion, reversing a four-month trend of outflows.
VanEck’s Bitcoin Trust ETF (HODL) and Bitwise Bitcoin ETF (BITB) experienced outflows of $5.9 million and $4.2 million, respectively, on the day BlackRock’s ETF saw substantial inflows. The Fidelity Wise Origin Bitcoin Fund (FBTC) recorded a minor inflow of $25.8 million, while the other ETFs did not see significant changes. The surge in interest in Bitcoin ETFs is fueled by a recent increase in BTC prices, with the asset rising 12% over the past week. On May 21, BTC reached a six-week high of $71,600 before dropping below $70,000 during early trading on May 22, currently trading at $69,444. Bitcoin has also achieved all-time highs against several local currencies in Asian and South American countries, with potential for new all-time highs in US dollars.
Analysts and trading firms are turning bullish on Bitcoin following weeks of consolidation. Markus Thielen, head of research at 10x Research, previously predicted that a breakthrough above $67,500 could lead to new all-time highs. BTC is currently trading at $69,000, just $3,000 away from reaching a new all-time high in US dollars. QCP Capital, a leading trading firm, has expressed optimism about Bitcoin’s price momentum, forecasting a potential return to highs of $74,000. The firm has observed significant buyers acquiring BTC Calls for December 2024, indicating confidence in the cryptocurrency’s upward movement. Overall, the positive sentiment around Bitcoin’s price trajectory and the inflows into Bitcoin ETFs suggest a growing interest in the cryptocurrency market.
