The United States spot Bitcoin ETF market is experiencing rapid growth due to the recent Fed rate cuts, prompting institutions to swiftly invest in BTC. In just one day, on Friday, the BTC ETF saw a remarkable inflow of $495 million, pushing the weekly inflows to exceed $1 billion. Additionally, the latest data reveals that BlackRock is consistently increasing its holdings in the IBIT ETF.
The demand for spot Bitcoin ETFs has surged following the Fed rate cuts, with inflows rising daily supported by strong trading volumes. Institutional participation in BTC ETFs is evident as regulated ETF products have acquired over 17,000 BTCs this week alone, showcasing robust demand.
Leading the inflows on Friday, Ark Invest’s ARKB received over $203 million, followed by Fidelity’s FBTC with $123 million and BlackRock’s IBIT with $111.7 million. Together, these entities obtained 6,661 Bitcoins from the market in a single day.
Notably, the Bitcoin ETF demand remains high compared to the daily production of 450 Bitcoins, with exchange-traded funds securing 17,000 Bitcoins this week, while MicroStrategy acquired 7,000. This surge in demand has propelled the Bitcoin price to increase by 5% over the past week, reaching $66,071.29, with a market cap of $1.305 trillion.
Furthermore, BlackRock’s increased purchasing of the IBIT ETF signifies its long-term commitment to Bitcoin as an asset and a hedge against inflationary pressures. According to the latest SEC filing, BlackRock obtained more shares of its IBIT spot Bitcoin ETF for its global allocation fund, emphasizing its growing interest in Bitcoin. With a total inflow of over $21.3 billion in nine months since its launch, the BlackRock BTC ETF stands out in the market.
In summary, the surge in spot Bitcoin ETF inflows exceeding $1 billion this week, along with BlackRock’s strategic acquisition of IBIT, underscores the growing prominence of Bitcoin in the investment landscape.