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BlackRock’s IBIT Investors Contribute $329M to ETF Amidst 3% Drop in Bitcoin
Oct
Significant Inflows Into BlackRock’s IBIT Amid Bitcoin Price Decline
Amid a slight downturn in Bitcoin’s value, BlackRock’s iShares Bitcoin Trust (IBIT) has seen a substantial influx of investment. On October 21, the fund recorded an impressive $329 million in inflows, as investors seized the opportunity following a 3% drop in Bitcoin’s price.
Performance of Bitcoin ETFs
The Fidelity Wise Origin Bitcoin Fund (FBTC) was the sole other spot Bitcoin ETF in the United States to post inflows, with $5.9 million on the same day. Other ETFs, however, experienced either stagnant or negative inflows.
Inflows for US spot Bitcoin ETFs on October 21 (highlighted in green). Source: Farside Investors
Notably, this marks the third instance in four trading days that BlackRock’s spot Bitcoin ETF has attracted over $300 million in investments, as confirmed by data from Farside Investors.
IBIT Leading the Market
As of October 21, BlackRock’s IBIT has firmly established itself as the leader among spot Bitcoin ETF products, surpassing a total of $23 billion in net inflows. This performance has drawn attention in the ETF community, with Bloomberg ETF analyst Eric Balchunas indicating that IBIT ranks third in ETF inflows for 2024, following only Vanguard’s and BlackRock’s S&P 500 index funds (VOO and IVV).
The recent investment surge comes at a time when Bitcoin’s price has dipped to a daily low of $66,975 after sliding 3.25%, which was partly due to its inability to breach the $70,000 resistance level. This price movement interrupted a significant rise where Bitcoin had previously climbed from $59,000 to $69,130 over a span of 10 days, according to CoinGecko data.
Market Reactions
Crypto traders have noted the market’s slight dip, with one trader acknowledging that such a pullback was anticipated. Others have speculated that Bitcoin might retrace to around the $62,000 range following its highest weekly close in five months on October 20.
Long-Term Inflows and Trends
The surge in Bitcoin’s value between October 11 and October 21 has largely been attributed to traders speculating on the political landscape surrounding the upcoming US elections.
Across all spot Bitcoin ETFs, total net inflows currently stand at $21.2 billion. This figure also includes over $20 billion in outflows from the Grayscale Bitcoin Trust (GBTC).
As of now, Bitcoin is trading at $67,360, reflecting a 2.2% decline over the previous 24 hours.