BlackRock Bitcoin ETF Receives $526 Million: Highest Level in Last 4 Months
BlackRock’s iShares Bitcoin Trust saw inflows of $526 million, the highest since March 2024. IBIT is now the year-to-date inflow leader, outperforming the Nasdaq QQQ index fund. Other bitcoin funds had mixed results as Van Eck experienced outflows.
BlackRock’s iShares Bitcoin Trust (IBIT) experienced a monumental gain on Monday, posting an inflow of $526 million. This event represents the ETF’s largest daily gain since March 13, 2024.
With 7,759 bitcoins added to its assets, it also represents IBIT’s seventh largest daily inflow.
Stocks Remain Neutral Despite Strong Inflows
Total ETF purchases reached approximately 7,860 BTC, valued at approximately $533 million, despite a daily mining output of only 450 BTC. This demand shock indicates positive momentum for bitcoin.
In the meantime, IBIT has now surpassed the Nasdaq QQQ Index Fund in terms of cumulative inflows for the year. IBIT could soon dwarf Vanguard’s Total Stock ETF on inflow.
“IBIT has passed QQQ into YTD net flows. And could pass Vanguard’s Total Stock Market ETF very soon too. Compare the net sizes of these ETF’s vs. net inflows. Demand for Bitcoin via ETF has been relentless. Unprecedented really,” said Spencer Hakimian on X.
Despite IBIT’s success, other bitcoin funds like Fidelity’s Wise Origin Bitcoin Fund (FBTC) and Van Eck Bitcoin Trust (HODL) have reported mixed results. Specifically, FBTC saw the second largest inflow of the day with $23.7 million. HODL, on the other hand, showed mixed investor confidence among the various funds with an outflow of $38.4 million.
However, bitcoin also faces other challenges. Notably, the infamous Mt. Gox, a historic bitcoin exchange, moved 42,587 BTC, valued at approximately $2.84 billion, to two wallets.
This transfer is part of the ongoing payment process to creditors, marking another chapter in its long resolution process. Earlier, when Mt. Gox transferred BTC to new accounts, the Kraken exchange initiated payment to creditors. Therefore, today’s transaction suggests further payments.
Meanwhile, the U.S. Government has been active in managing the Bitcoin it continues to hold. Taking advantage of the recent price spike, it sold 58.74 BTC for approximately $3.96 million via Coinbase Prime.
This year alone, the government sold 6,261 BTCs at an average price of $62,538. The total amount sold was approximately $392 million.
“The U.S. government occasionally moves/sells some BTC, but the amounts are usually not significant. The FUD associated with the U.S. government is often exaggerated,” Spot On Chain said.
BTC Price Evolution
Despite these large transactions and active participation in the market, the price of Bitcoin has decreased by 1.33%, currently standing at about $66,745. However, Bitfinex analysts remain bullish in an email sent to a media outlet.
Bitfinex analysts noted that the Bitcoin Reserve on Exchanges metric, which tracks BTC held in exchange wallets, suggests that investors are withdrawing their assets for long-term storage rather than selling.
Such behavior typically precedes a supply shortage, potentially driving prices higher.
“In addition, given the uncertainty caused by an undefined Democratic candidate, we can expect a week full of news and volatility, with the election, the launch of the Ethereum ETF and the receipt of coins by Mt. Gox creditors being some of the main talking points,” Bitfinex analysts pointed out.
By Audy Castaneda