BTC
by Soumen Datta
October 22, 2024
BlackRock's iShares Bitcoin Trust (IBIT) has emerged as a leader in the ETF market, accumulating substantial investments despite Bitcoin's price fluctuations.
Bitcoin spot exchange-traded funds (ETFs) ETFs recorded a remarkable $2.67 billion in net inflows in just one week, with $294 million alone on October 21, according to SoSovalue data.
The standout performer among these ETFs is BlackRock’s iShares Bitcoin Trust (IBIT), which has been attracting substantial investments. On October 21, investors funneled $329 million into IBIT. This marked the third time in four trading days that IBIT secured inflows exceeding $300 million, according to Farside Investors data.
BlackRock's IBIT now boasts over $23 billion in total net inflows, solidifying its position as the dominant player in the Bitcoin ETF market. Notably, IBIT ranks third for ETF inflows in 2024, trailing only behind Vanguard and BlackRock’s S&P 500 index funds, VOO and IVV.
As of October 21, U.S.-based spot Bitcoin ETFs surpassed $21.23 billion in total net flows, an achievement considering they have been on the market for less than a year. In comparison, it took gold ETFs nearly five years to reach this milestone.
On October 21, Bitcoin reached a near three-month high of $69,487 before retracting to approximately $68,570. This price action may be influenced by a lag effect from the influx of ETF investments, which can take time to reflect in the spot price, as highlighted by Bitfinex analysts.
The recent surge in Bitcoin ETF inflows can be attributed to a combination of factors, described by some experts as a "perfect storm" for cryptocurrency investments.
According to CoinTelegraph, Chris Aruliah, head of institutions at Bybit, noted that the upcoming U.S. elections are instilling confidence in investors.
With both sides of the political spectrum making favorable comments about cryptocurrencies, there is a growing expectation of regulatory clarity.
Moreover, Alicia Kao, managing director at KuCoin, pointed out that macroeconomic optimism is fueling this trend. Recent economic data has alleviated concerns about a recession, with the Federal Reserve starting to lower interest rates.
This environment encourages hedge fund participation in digital assets, with 47% of traditional hedge funds now investing in cryptocurrencies, up from 29% in 2023. Kao emphasized that many of these funds plan to either maintain or increase their digital asset exposure in the near future.
Meanwhile, Asia's MicroStrategy Metaplanet recently raised 10 billion Japanese Yen through stock sales in anticipation of another significant Bitcoin purchase.
On Oct. 15, Metaplanet announced the purchase of nearly 107 Bitcoins, resulting in a 15.7% increase in its share price for the day. With this latest acquisition, Metaplanet now holds 855.5 BTC, valued at $57.8 million at current market rates.
Disclaimer
Disclaimer: The views expressed in this article do not necessarily represent the views of BSCNews. The information provided in this article is for educational and informational purposes only and should not be construed as investment advice. BSCNews assumes no responsibility for any investment decisions made based on the information provided in this article
Author
Soumen Datta
Soumen is an experienced writer in cryptocurrencies, DeFi, NFTs, and GameFi. He has been analyzing the space for the last several years and believes there is a lot of potential with blockchain technology, even though we are still at an early stage. In his spare time, Soumen enjoys playing his guitar and singing along. Soumen holds bags in BTC, ETH, BNB, MATIC, and ADA.
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