BlackRock Makes Massive Bitcoin Purchase Amid Renewed ETF Demand
On Wednesday, BlackRock made headlines with its largest Bitcoin acquisition of the month, purchasing 2,913 BTC worth $184.3 million in a single day. This comes as inflows into cryptocurrency investment products experience a revival, particularly within Bitcoin exchange-traded funds (ETFs).
The resurgence in demand for Bitcoin ETFs has been significant. Earlier in January, U.S.-based Bitcoin ETFs saw an impressive market debut, driven by the growing appetite for indirect exposure to the world’s largest cryptocurrency. March saw record-breaking net inflows in a single day, while by June, net assets surged to an all-time high of $62.5 billion. However, this momentum slowed in July as demand tapered off.
Despite the recent lull, Wednesday’s purchase of 2,913 Bitcoin by BlackRock’s iShares Bitcoin Trust (IBIT) marked a notable turnaround. This single transaction became the largest inflow the fund had seen throughout September.
Following this acquisition, BlackRock now holds an impressive 359,279 BTC, valued at a staggering $23 billion. This positions BlackRock as a dominant force in the corporate Bitcoin space, far surpassing other major public companies, such as MicroStrategy.
Interestingly, alongside BlackRock’s IBIT, the Bitwise Bitcoin ETF (BIBT) was one of the few funds that experienced positive inflows on Wednesday. BlackRock’s $184.3 million purchase led to a broader increase in Bitcoin ETF inflows, which reached $105.8 million in the U.S. alone that day. Meanwhile, BIBT saw net inflows of $2.07 million.
In contrast, some funds experienced outflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) sold 525 BTC worth $33.2 million, while Ark 21Shares Bitcoin ETF (ARKB) offloaded $47.41 million worth of Bitcoin on the same day.
After weeks of negative momentum, the 30-day inflow trend has finally turned positive, indicating renewed interest in Bitcoin ETFs. Over the past five days, U.S.-based Bitcoin ETFs have accumulated nearly $500 million in premium assets, with net inflows recorded in nine of the last ten days.
Read more Bitcoin at a Critical Crossroads: Will It Break Free from Its Bearish Trend?
While U.S.-based Bitcoin funds briefly lost their dominance due to weakening inflows, the renewed investor interest has reinvigorated their market position, leading to a significant increase in their Bitcoin holdings compared to other regions.
With Bitcoin ETFs continuing to attract inflows, the trend signals a strong resurgence in demand, solidifying BlackRock’s position as a key player in the cryptocurrency investment space.
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