The spot Bitcoin ETF market in the US has been surging rapidly after the Fed’s rate cut announcements, with institutions eager to secure their share of BTC. Friday saw an impressive $495 million inflow into BTC ETFs in a single day, pushing the weekly total to over $1 billion. BlackRock’s ETF IBIT holdings have also been on the rise.
The demand for spot Bitcoin ETFs has seen a significant boost post the Fed rate cuts, with inflows consistently increasing each day, supported by robust trading volumes. Institutional participation in BTC ETFs has been strong, evident by the influx of over 17,009 BTCs this week alone.
Leading the pack for the second consecutive day, Ark Invest’s ARKB attracted over $203 million in inflows on Friday. Fidelity’s FBTC followed with $123 million, while BlackRock’s IBIT secured $111.7 million in inflows according to data from Farside Investors. These top players collectively acquired 6,661 Bitcoins on Friday.
The demand for Bitcoin remains high, given that 17,000 Bitcoins were absorbed by exchange-traded funds this week, alongside MicroStrategy purchasing 7,000 Bitcoins. With ETFs buying 7,526 Bitcoins and MicroStrategy acquiring 7,000 Bitcoins in the past week, the significant demand surpasses the daily production of 450 Bitcoins.
The surge in Bitcoin price, up 5% over the past week, is a result of these market dynamics, with BTC currently trading at $66,071.29. Investors are gearing up for an expected bull run in Q4 2024.
BlackRock, the world’s largest asset manager, has displayed a newfound interest in Bitcoin, seeing it as a long-term asset and a hedge against inflation. Increasing its Bitcoin holdings across its funds, BlackRock’s support for the asset class has been substantial. The firm’s consistent buying activity signifies a positive outlook towards Bitcoin, as evidenced by its recent SEC filing showcasing increased shares of its spot Bitcoin ETF, IBIT.
Having experienced over $21.3 billion in inflows within nine months of launch, the BlackRock BTC ETF has emerged as a dominant player in the market.