The market for US spot Bitcoin ETFs has been rapidly heating up post the Fed rate cut announcements as institutions are rushing to acquire BTC. On Friday, the influx of BTC ETFs hit an impressive $495 million in a single day, pushing weekly inflows to over $1 billion. Notably, BlackRock is progressively growing the holdings of its ETF IBIT according to the latest report.
The demand for spot Bitcoin ETFs has surged following the Fed rate cuts, with inflows consistently rising each day supported by high trading volumes. This reflects strong institutional involvement in BTC ETFs as regulated ETF products have acquired over 17,009 BTCs just this week alone. Leading the way in inflows, Ark Invest’s ARKB obtained over $203 million on Friday, with Fidelity’s FBTC and BlackRock’s IBIT following closely behind. Together, these entities managed to withdraw 6,661 Bitcoins from the market on Friday.
The demand for Bitcoin ETFs is notably higher than the daily production rate of 450 Bitcoins, with exchange-traded funds accumulating 17,000 Bitcoins. Additionally, MicroStrategy alone secured 7,000 Bitcoins this week. This surge in demand has powered Bitcoin’s price to rise by 5% over the week, with the current price trading at $66,071.29 and a market cap of $1.305 trillion. Investors are gearing up for an anticipated bull run in Q4 2024.
BlackRock, the largest asset manager globally, has significantly increased its Bitcoin holdings, viewing Bitcoin as a long-term asset and a hedge against inflation. The company has been on a notable Bitcoin buying spree, showing strong support for the asset class. With $21.3 billion in inflows within nine months of launch, BlackRock’s BTC ETF remains a dominant force in the market.