Bitcoin ETF Inflows Surpass $1 Billion as BlackRock Leads the Charge

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The U.S. spot Bitcoin ETF market is on fire, with inflows soaring past $1 billion this week! Thanks to the Fed’s rate cuts, institutional demand for Bitcoin skyrockets, and BlackRock is leading the charge. The asset giant has aggressively boosted its Bitcoin ETF (IBIT) holdings to 198,874 shares, up from just 43,000 in June. 

Friday alone saw $495 million in inflows, with over 17,009 BTC snapped up in a week. This explosive demand fuels excitement for a potential Bitcoin bull run as we head into Q4 2024!

With this latest development, bullish vibes are returning to the crypto space. Let’s see the interesting catch of the week!

Spot Bitcoin ETF Demand Skyrockets

The demand for spot Bitcoin ETFs has soared dramatically, supported by high trading volumes. Ark Invest’s ARKB led the pack, attracting more than $203 million in inflows on Friday, followed by Fidelity’s FBTC with $123 million, and BlackRock’s IBIT with $111.7 million in inflows, according to data from Farside Investors. Together, these three funds alone accumulated 6,661 BTC from the open market in just one day.

Compared to Bitcoin’s daily production rate of just 450 BTC, the ETF demand is significantly outstripping supply. Alongside the 17,000 BTC scooped by ETFs, MicroStrategy has also acquired 7,000 BTC this week, contributing further to the supply squeeze.

As a result of this heightened demand, Bitcoin’s price has been climbing steadily, gaining 5% over the past week. At the time of writing, Bitcoin is trading at $66,071.29, with a market capitalization of $1.305 trillion. Investors are eagerly positioning themselves in anticipation of a potential Bitcoin bull run in the fourth quarter of 2024.

BlackRock’s Aggressive Buying Strategy

BlackRock, the world’s largest asset manager, has been on a Bitcoin buying spree, offering considerable support to the asset class. The company views Bitcoin as a long-term asset and a hedge against rising inflation. According to the latest SEC filings, BlackRock has steadily increased its Bitcoin holdings through its spot Bitcoin ETF (IBIT).

In a recent portfolio filing for its Global Allocation Fund, BlackRock disclosed ownership of 198,874 IBIT shares as of July 31, up from 43,000 in June. With over $21.3 billion in inflows within just nine months since its launch, BlackRock’s Bitcoin ETF continues to dominate the market. This aggressive accumulation reflects the growing institutional confidence in Bitcoin as an asset class, setting the stage for potential significant price movements in the coming months.