The spot Bitcoin ETF market in the US has been rapidly gaining momentum, fueled by announcements of Fed rate cuts as institutions scramble to secure their portion of BTC. On a single day, Friday saw an astonishing $495 million in BTC ETF inflows, pushing the weekly total beyond $1 billion. Notably, BlackRock has been consistently increasing its holdings in its own ETF IBIT.
The surge in demand for spot Bitcoin ETFs following the Fed rate cuts has been remarkable, with inflows rising daily alongside robust trading volumes. This surge in demand has translated into over 17,009 BTCs being acquired by regulated ETF products in just one week, underscoring substantial institutional participation in BTC ETFs.
Leading the pack for the second straight day is Ark Invest’s ARKB with over $203 million in Friday’s inflows. Following closely is Fidelity’s FBTC with $123 million, and BlackRock’s IBIT with $111.7 million, as reported by Farside Investors. Together, these three entities withdrew 6,661 Bitcoins from the market on Friday alone.
The demand for Bitcoin ETFs significantly surpasses the daily production of 450 Bitcoins, with exchange-traded funds acquiring 17,000 Bitcoins while MicroStrategy alone secured 7,000 Bitcoins this week.
The continued influx of capital is reflected in the price of Bitcoin, which has made notable gains of 5% over the past week, currently trading at $66,071.29 with a market cap of $1.305 trillion as investors position themselves ahead of the anticipated Q4 2024 bull run.
BlackRock, the world’s largest asset manager, has been actively accumulating Bitcoin, viewing it as a long-term asset and a hedge against inflationary pressures. Recent SEC filings reveal increased share purchases of its spot Bitcoin ETF (IBIT) for its global allocation fund, with a substantial rise in holdings reported in its latest portfolio filing.
With inflows exceeding $21.3 billion since its launch nine months ago, the BlackRock BTC ETF remains a dominant force in the market.