The US spot Bitcoin ETF market has experienced rapid growth in response to the Fed rate cuts, with institutions eager to secure their share of BTC. On Friday, inflows for BTC ETFs reached an impressive $495 million in a single day, contributing to a weekly total surpassing $1 billion. Notably, BlackRock has been expanding its IBIT ETF holdings, indicating a rising interest in Bitcoin.
Demand for spot Bitcoin ETFs has surged following the Fed rate adjustments, attracting continuous inflows backed by substantial trading volumes. Institutional involvement in BTC ETFs is evident as regulated ETF products acquired over 17,009 BTCs in just one week. The leading ETFs in terms of inflows are Ark Invest’s ARKB, Fidelity’s FBTC, and BlackRock’s IBIT, collectively obtaining 6,661 Bitcoins from the market on Friday.
The significant demand for Bitcoin ETFs, with 17,000 Bitcoins accumulated by exchange-traded funds, is highlighted when compared to the daily production of 450 Bitcoins. Additionally, MicroStrategy bought 7,000 Bitcoins within the week, adding to the escalating demand for BTC. The continued influx of institutional investments has facilitated a price surge, driving Bitcoin’s value up by 5% in the past week.
BlackRock, the world’s largest asset manager, has been actively acquiring Bitcoins, demonstrating strong support for the digital asset. This strategic move signifies an acknowledgment of Bitcoin’s long-term viability as an asset and a hedge against inflationary pressures. Through recent SEC filings, BlackRock has revealed a substantial increase in its IBIT ETF shares, showcasing a commitment to bolstering its exposure to Bitcoin within its fund allocations.
With over $21.3 billion in inflows since its launch nine months ago, the BlackRock BTC ETF has established itself as a dominant force in the market. The increasing interest from institutions and asset managers further indicates a positive outlook for Bitcoin, with investors gearing up for a potential bull run in the fourth quarter of 2024.