The market for US spot Bitcoin ETFs has seen rapid growth following the announcements of Fed rate cuts, as institutions move quickly to invest in BTC. In just one day, on Friday, the inflows for BTC ETFs reached an impressive $495 million, pushing the weekly inflows to over $1 billion. A notable trend is BlackRock’s continuous increase in its ETF IBIT holdings.
The demand for spot Bitcoin ETFs has surged after the Fed rate cuts, with inflows increasing daily alongside high trading volumes. Regulated ETF products have acquired over 17,009 BTCs this week alone, showcasing significant institutional interest in BTC ETFs.
Leading the inflows on Friday was Ark Invest’s ARKB with over $203 million, followed by Fidelity’s FBTC at $123 million, and BlackRock’s IBIT at $111.7 million. These key players collectively secured 6,661 Bitcoins from the market on Friday.
Comparing the ETF demand to the daily production of 450 Bitcoins, the demand for Bitcoin ETFs is notably high. In addition to the 17,000 Bitcoins collected by exchange-traded funds, MicroStrategy alone acquired 7,000 Bitcoins this week.
The surge in Bitcoin price, which has increased by 5% over the past week, is attributed to the strong demand driven by institutional investors preparing for a projected bull run in Q4 2024. As of now, Bitcoin is trading at $66,071.29 with a market cap of $1.305 trillion.
BlackRock, the world’s largest asset manager, has recently been actively buying Bitcoin, signaling strong support for the asset class as a long-term investment and hedge against inflation. With consistent growth in its Bitcoin holdings for its in-house funds, BlackRock’s spot Bitcoin ETF (IBIT) has garnered inflows of over $21.3 billion since its launch, establishing dominance in the market.