BlackRock ETF Records Largest Inflow in 35 Days as Bitcoin’s Weekly Rally Stalls

BlackRock’s Bitcoin exchange-traded fund (ETF) recently experienced its largest daily net inflow in over a month, as investors appeared to capitalize on a slight dip in Bitcoin’s price below $64,000 after a week of strong gains.

On August 26, the iShares Bitcoin Trust ETF (IBIT) recorded a net inflow of $224.1 million, marking its biggest single-day inflow since July 22, when it saw $526.7 million in inflows. At that time, Bitcoin reached a daily high of $67,534, according to data from Farside Investors.

Over the past 24 hours, Bitcoin has dropped nearly 2%, declining from a daily peak of $64,121 to $63,031. This decline followed a robust weekly rally during which Bitcoin climbed from a seven-day low of $58,756 to a high of $64,475 on August 25, its highest level since early August.

The substantial inflows into IBIT contributed to a total daily net inflow of $202.6 million across 11 U.S.-based spot Bitcoin ETFs. However, while IBIT saw significant investment, other ETFs from issuers such as Bitwise, Fidelity, and VanEck collectively faced net outflows totaling $32.1 million.

Apart from IBIT, only the Franklin Bitcoin ETF (EZBC) and the WisdomTree Bitcoin Fund (BTCW) recorded net inflows, bringing in $5.5 million and $5.1 million, respectively.

In contrast, U.S. Ether ETFs experienced joint net outflows of $13.2 million, with Ethereum’s price declining by 2.22% over the last day, settling at $2,686.

The strong inflows into IBIT follow its leadership among global crypto investment products for the week ending August 23. According to CoinShares data, these products saw their highest weekly inflows in five weeks.

Bitcoin-focused investment products led the charge last week, with inflows totaling $543 million. IBIT once again attracted the most significant inflows of any crypto investment product, bringing in $318 million.

CoinShares’ head of research, James Butterfill, noted that the surge in crypto product purchases last week was driven by speculation that the U.S. Federal Reserve might lower interest rates, following a suggestion by Fed Chair Jerome Powell on August 21 that such a move could occur in September.

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