The spot Bitcoin ETF market in the US has been rapidly gaining momentum following the announcement of Fed rate cuts, attracting institutional interest in BTC. On a single day last Friday, BTC ETF inflows soared to an impressive $495 million, pushing the total weekly inflows over $1 billion. BlackRock is notably increasing holdings in its ETF IBIT, according to the latest data.
With demand for spot Bitcoin ETFs surging post-Fed rate cuts, daily inflows are on the rise supported by robust trading volumes. This surge in demand has led to regulated ETF products acquiring over 17,009 BTCs this week alone, showcasing significant institutional involvement.
Top players in the market include Ark Invest’s ARKB, Fidelity’s FBTC, and BlackRock’s IBIT, which collectively absorbed 6,661 Bitcoins from the market on Friday. Even amidst the daily production of 450 Bitcoins, the high demand for Bitcoin ETFs remains evident, with exchange-traded funds acquiring 17,000 Bitcoins and MicroStrategy alone securing 7,000 Bitcoins this week.
Compared to a 5% increase in the Bitcoin price over the past week, the current BTC price trades at $66,071.29 with a market cap of $1.305 trillion, signaling investor anticipation of a Q4 2024 bull run.
Meanwhile, BlackRock, the world’s largest asset manager, has been actively accumulating Bitcoin recently, viewing it as a long-term asset and a hedge against inflation. Recent SEC filings reveal that BlackRock purchased more shares of its spot Bitcoin ETF (IBIT) for its global allocation fund. The firm’s increasing Bitcoin holdings for in-house funds highlight its confidence in the asset class.
Having attracted over $21.3 billion in inflows since its launch nine months ago, the BlackRock BTC ETF holds a dominant position in the market landscape.