Bitcoin ETF- BlackRock’s IBIT Attracts $329M Despite Market Drop
Bitcoin ETF– Investors have demonstrated resilience in the face of Bitcoin’s recent price fluctuations. On October 21, BlackRock’s iShares Bitcoin Trust (IBIT) experienced a remarkable inflow of $329 million, following a 3% decline in Bitcoin’s price. This strategic move highlights investor confidence, as they capitalize on the dip.
Fidelity’s Fund Also Sees Inflows
The Fidelity Wise Origin Bitcoin Fund (FBTC) was the only other U.S. spot Bitcoin ETF to record inflows on the same day, attracting $5.9 million. In contrast, other funds reported either zero or negative flows. Notably, BlackRock’s IBIT has consistently outperformed, having recorded over $300 million in inflows for three of the last four trading days, according to Farside Investors data.
IBIT Leads the Spot Bitcoin ETF Market
As of October 21, BlackRock’s IBIT has crossed the impressive milestone of $23 billion in total net inflows, making it a leader among all spot Bitcoin ETF products. Bloomberg ETF analyst Eric Balchunas remarked that IBIT has achieved the third-largest ETF inflows in 2024, trailing only Vanguard and BlackRock’s S&P 500 index funds (VOO and IVV).
Despite Bitcoin’s recent slip to a low of $66,975, following its attempt to break the $70,000 resistance, traders remain optimistic. Many, like crypto trader Jelle, noted that the market’s slight pullback was expected. Other traders are speculating on a potential price correction to the $62,000 range, particularly after Bitcoin’s recent surge, attributed to speculation surrounding the upcoming U.S. election. Currently, Bitcoin is trading at $67,360, down 2.2% in the past 24 hours.
FAQs
Why did BlackRock’s iShares Bitcoin Trust (IBIT) see a surge in inflows?
BlackRock’s IBIT experienced a surge of $329 million in inflows on October 21, primarily because investors capitalized on a recent price dip of Bitcoin. Despite the drop, investor confidence in the ETF remains strong, as many see it as a strategic opportunity to buy into Bitcoin at a lower price.
How do the inflows into Bitcoin ETFs compare to the overall market trends?
The inflows into Bitcoin ETFs, particularly IBIT, contrast with the overall market trends where Bitcoin’s price recently slipped. While other Bitcoin ETFs recorded zero or negative flows, IBIT has consistently attracted significant investments, highlighting its leadership in the spot Bitcoin ETF market with total net inflows surpassing $23 billion.
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