The US market for spot Bitcoin ETFs has seen a rapid surge in activity following the Federal Reserve’s rate cut announcements, with institutional investors racing to secure their share of BTC. In a single day, BTC ETF inflows hit an impressive $495 million on Friday, pushing weekly inflows to over $1 billion. Notably, BlackRock is actively increasing its holdings in its own ETF IBIT, as the demand for spot Bitcoin ETFs continues to soar.
Amidst the increasing demand post Fed rate cuts, the spot Bitcoin ETF has witnessed a surge in inflows and trading volumes, acquiring over 17,009 BTCs in a week. This signifies robust institutional participation in BTC ETFs, with top players like Ark Invest’s ARKB, Fidelity’s FBTC, and BlackRock’s IBIT attracting significant inflows. These three entities alone bought 6,661 Bitcoins on Friday.
Compared to the daily production of 450 Bitcoins, the demand for Bitcoin ETFs remains high, with exchange-traded funds scooping up 17,000 Bitcoins this week. Additionally, MicroStrategy alone acquired 7,000 Bitcoins. This strong demand has led to a 5% increase in the Bitcoin price over the past week, with the current price at $66,071.29 and a market cap of $1.305 trillion, signaling investor anticipation of a Q4 2024 bull run.
BlackRock, the world’s largest asset manager, has recently embarked on a significant Bitcoin buying spree, viewing the cryptocurrency as a long-term asset and a hedge against inflation. Notably, BlackRock has been steadily increasing its Bitcoin holdings for its various funds, with its spot Bitcoin ETF IBIT witnessing notable growth. With over $21.3 billion in inflows within nine months of its launch, BlackRock’s BTC ETF has established dominance in the market.