As a seasoned crypto investor with a knack for spotting trends and a heart full of coins, this recent surge in Bitcoin ETF inflows has me grinning from ear to ear. The fact that BlackRock’s spot Bitcoin ETF led this rally, pushing total U.S. spot Bitcoin ETF holdings past the 1 million BTC mark, is nothing short of exhilarating.
On October 30th, BlackRock’s Bitcoin ETF saw its largest one-day investment influx since its initial release in January, extending a six-day trend of increased investments across all twelve Bitcoin ETFs.
Based on information from SoSoValue, Bitcoin ETFs occupying the 12th spot collectively brought in a whopping $893.21 million on October 30. This figure is second only to the $1.045 billion inflow recorded on March 12. Over these six consecutive days, they’ve been experiencing inflows, accumulating more than $3 billion in total.
The surge in Bitcoin’s price is largely attributed to BlackRock’s Bitcoin ETF, as it recorded a staggering $872.04 million in investments, exceeding its earlier record from March 2021 of $849 million for the iShares Bitcoin Trust.
Bitcoin ETF holdings surge past 1 million BTC
Eric Balchunas, an analyst at Bloomberg ETF, highlighted the importance of this increase, pointing out that it pushed the total U.S. spot Bitcoin ETF holdings above 1 million Bitcoins, a significant achievement for Bitcoin ETFs within the American market.
It’s quite fitting that the record-breaking daily influx of $IBIT contributed to U.S. spot ETFs crossing the threshold of holding more than 1 million Bitcoins, as stated by Balchunas.
On October 30th, Bitcoin ETFs based in the United States collectively purchased approximately 12,418 Bitcoins. Prominent players in this field, such as BlackRock, Grayscale, and Fidelity, were instrumental in these acquisitions. Among them, BlackRock’s ETF possesses the largest share with an impressive 429,129 Bitcoin, followed by Grayscale managing 220,415 Bitcoin and Fidelity accumulating 188,592 Bitcoin.
Over the past month, there’s been a surge in institutional interest for BlackRock’s fund, with about 45% of its current $30.86 billion worth of assets being accumulated during this period, suggesting rapid growth.
Apart from BlackRock, other Exchange-Traded Funds (ETFs) also witnessed significant investment inflows. For instance, Fidelity’s FBTC attracted $12.57 million, and ARK 21Shares’ ARKB saw an inflow of approximately $7.18 million.
Over the same period, Grayscale Bitcoin Mini Trust experienced a $7.96 million influx of funds, while Invesco’s BTCO, Valkyrie’s BRRR, and VanEck’s HODL attracted investments worth $7.18 million, $6.11 million, and $4.07 million respectively. The exception was Bitwise’s BITB, which registered a $23.89 million outflow.
The total Bitcoin holdings accumulated by these ETFs have surpassed 1 million Bitcoins, setting a new record. This could soon eclipse the estimated 1.1 million Bitcoins attributed to Bitcoin’s anonymous creator, Satoshi Nakamoto, in their wallet.
1) The strong influx of funds has boosted the cost of Bitcoin, leading experts in the industry to predict that ongoing institutional investment might propel Bitcoin to record-breaking highs. Not even a month old, U.S.-based Bitcoin ETFs have accounted for about 75% of all new investments in Bitcoin, pushing its price past the $50,000 threshold.
Currently, as of October 30th, Bitcoin (BTC) is being traded at approximately $72,289. Analysts from Bitfinex suggest that by the end of 2024, its price might surge to around $80,000. This forecast is derived from the current market’s options structure and the possibility of a Republican victory in the upcoming U.S. presidential election, factors considered favorable for Bitcoin.
While some specialists are uncertain about Bitcoin reaching an unquestionable peak, they view the recent surge more as a “Trump hedge” or speculative investment linked to possible changes in politics, rather than one primarily fueled by broader economic factors.
From this viewpoint, it’s clear that Bitcoin is currently gaining traction due to growing institutional attention. However, for it to maintain its momentum and hit a new record high, it might necessitate additional favorable economic conditions on a broader scale.
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2024-10-31 10:05