BlackRock's Bitcoin ETF Leads $876M Crypto Investment Surge
On October 7, 2024, a significant wave of investment swept through the cryptocurrency market as US spot Bitcoin ETFs, led by BlackRock's iShares Bitcoin Trust (IBIT), recorded a daily inflow of $876 million. This substantial influx marked a notable shift in institutional demand, with IBIT's inflows exceeding those of its competitors and contributing to a surge in overall net flows.
The $876 million inflow into Bitcoin ETFs on October 7 was the largest daily flow since the launch of spot Bitcoin ETFs in the US in January 2024. This figure represents a significant portion of the total net flows of ETFs on that day, which stood at $876 million. While this amount is a fraction of the Bitcoin market capitalization of around $2.3 trillion, it had an impact on prices due to concentrated purchases and lower liquidity in available spot markets.
Traders and asset allocators alike took note of this trend. Traders observed ETF flows as a short-term momentum indicator, while asset allocators followed the cumulative AUM as a measure of institutional adoption. The cumulative AUM of US spot Bitcoin ETFs approached $170 billion as of October 7, with approximately $61,500 million in total net flows since inception. BlackRock's IBIT, with an AUM of approximately $97 billion, continues to concentrate the highest institutional demand.
The $876 million inflow into Bitcoin ETFs on October 7, led by BlackRock's IBIT, signals a growing interest from institutional investors in the cryptocurrency market. As Bitcoin traded between $118,000 and $125,000 during this period, the influx of funds contributed to spot BTC demand support, further solidifying Bitcoin's position in the investment landscape.
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