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BlackRock's Bitcoin ETF Sets New Inflow Record, Pushing BTC Above $60K

BlackRock's BTC ETF Breaks Records, Boosting Bitcoin Beyond $60,000

Feb 29, 2024
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BlackRock's iShares Bitcoin Trust sees unprecedented daily inflow, contributing to Bitcoin's surge and intensifying competition in the cryptocurrency ETF market.

BlackRock's Bitcoin Exchange-Traded Fund (ETF) has achieved a remarkable milestone by setting a new daily inflow record, which has significantly influenced Bitcoin's value, pushing it above the $60,000 mark for the first time since November 2021.

On Tuesday, the iShares Bitcoin Trust (IBIT) witnessed another substantial influx, totaling $520 million, thereby surpassing $6.5 billion in total flows since its inception. Moreover, as Bitcoin's price surged during this period, the value of BlackRock's Bitcoin reserves soared to over $8 billion.

In contrast, Fidelity's Bitcoin ETF currently holds $5.6 billion in BTC but experienced a considerably lower inflow of $126 million on the same day.

Meanwhile, Grayscale, IBIT's primary competitor, suffered outflows amounting to $125 million. Although Grayscale maintains a substantial lead in total assets at $25 billion, BlackRock's ETF is gradually closing the gap due to its significantly lower management fee.

Bloomberg ETF analyst Eric Balchunas highlighted that BlackRock's exceptional inflow performance positioned it as the second-highest ETF for inflows in the United States, trailing only BlackRock's iShares Core S&P 500 ETF (IVV).

Furthermore, individual trades for IBIT's ETF surpassed those of popular ETFs like SPY and QQQ, indicating a considerable participation of retail investors in ETF trading—an unexpected trend considering the ETF's appeal as an institutional trading platform.

Bitcoin's price has surged by over 25% in the past five days, reaching over $63,000 at the time of writing. Many analysts attribute this success to the launch of Bitcoin spot ETFs, which collectively absorbed over $6.7 billion in flows since their inception on January 11.

Within just 30 days, BlackRock and Fidelity's Bitcoin funds shattered records as the most successful ETF launches in history based on flows. BlackRock also achieved a new daily trading volume peak on Monday, exceeding $1.3 billion and securing a spot among the top 11 ETFs in the country by volume.

Bitcoin is now inching closer to its all-time high of $69,000 USD, and in certain currency denominations, it has already surpassed previous records. For instance, one BTC now equals over 95,000 Australian dollars, compared to $87,000 at its peak in November 2021.

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