BlackRock’s Bitcoin ETF Attracts $300 Million in Inflows, Bucking Low Flows Trend

BlackRock’s Bitcoin ETF Inflows Surge

BlackRock’s spot Bitcoin exchange-traded fund (ETF) has generated significant traction, accounting for 95% of the total inflow into United States spot Bitcoin ETFs on Tuesday. The combined inflows for these ETFs surpassed $300 million, a substantial boost for the market.

BlackRock’s ETF Performance

Preliminary data from Farside Investors reveals that BlackRock’s iShares Bitcoin Trust (IBIT) witnessed a substantial inflow of $290 million on May 21. When considering all eleven ETF issuers combined, the net inflow amounted to $305.7 million.

Notably, this marks a reversal in the trend of zero or minimal inflows observed over the past six weeks.

Market Trends and Comparisons

The recent influx of funds into BlackRock’s ETF represents the highest level since April 5, eclipsing the cumulative inflows witnessed over the past 21 trading days. In the context of a volatile Bitcoin rally, spot Bitcoin ETFs have experienced over $1 billion in inflows during the past four trading days.

BlackRock’s IBIT has accumulated a total of $16 billion in inflows since its launch, positioning it close to industry leader Grayscale, whose GBTC spot ETF boasts $20 billion in AUM.

Outflows and Price Movements

Meanwhile, the VanEck 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) observed a minor inflow of $25.8 million, while the remaining ETFs reported no significant changes.

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, currently trading at $69,444.

Analyst Predictions and Market Outlook

Markus Thielen, the head of research at 10x Research, previously predicted that a breakthrough above $67,500 could potentially 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.

Leading trading firm QCP Capital has expressed optimism about Bitcoin’s price momentum, forecasting a potential return to the highs of $74,000. The firm noted substantial buyers acquiring BTC Calls for December 2024, indicating confidence in the cryptocurrency’s upward movement.