Bitcoin ETFs See $496.7 Million in Cumulative Inflows as BlackRock Breaks Records

Institutional Investors Boost Bitcoin ETFs with $184 Million Inflow at BlackRock

Bitcoin ETFs – The month of September, traditionally bearish for Bitcoin, witnessed an unprecedented surge in institutional interest, particularly in Bitcoin exchange-traded funds (ETFs). On September 25, BlackRock, the world’s largest asset manager, recorded $184.4 million in inflows for its spot Bitcoin ETF, marking the highest daily inflow for any fund during the month. This comes as Bitcoin struggles near the key level of $64,491.

Bitcoin ETF Inflows Surge Despite Market Concerns

BlackRock’s iShares Bitcoin Trust (IBIT) was the first Bitcoin ETF to break the $100 million mark in September, with a notable inflow of $184.4 million on September 25. This represents a significant moment, as the only other ETF to see inflows that day was Bitwise Bitcoin ETF (BITB), which attracted a comparatively modest $2.1 million.

In contrast, some ETFs faced outflows on September 25, including Fidelity Wise Bitcoin Origin Fund (FBTC) and Ark 21Shares Bitcoin ETF (ARKB), which saw outflows of $33.2 million and $47.4 million, respectively, according to data from Farside. The inflows have driven cumulative spot Bitcoin ETF investments up by $496.7 million over the past five days, marking a streak of positive growth.

BlackRock Sets New Record for September Inflows

BlackRock’s inflows on September 25 set a record as the largest single-day inflow in the month, surpassing its own inflow of $98.9 million on September 24. ARKB also saw strong activity earlier in the month, with $99.3 million inflows on September 13. These developments highlight increasing investor confidence in Bitcoin ETFs as a viable asset class, driven by expectations of future market gains.

This surge in investment comes on the heels of the Federal Reserve’s highly anticipated 50 basis point rate cut, announced on September 18. This decision pushed Bitcoin back above the $60,000 threshold for the first time since August 30. CryptoQuant’s founder and CEO, Ki Young Ju, attributed this growing demand for spot Bitcoin ETFs as a key factor in the United States’ increasing dominance in Bitcoin holdings relative to other countries.

BlackRock Adjusts ETF Rules Amid Custodial Concerns

Investor scrutiny regarding Coinbase’s role as the custodian for BlackRock’s Bitcoin ETF has led to significant amendments. On September 23, BlackRock filed a rule amendment that requires Coinbase to ensure Bitcoin withdrawals within a 12-hour window. This amendment follows rising concerns from investors about Coinbase’s onchain settlement practices, specifically in terms of transparency and timely execution of withdrawals.

Many investors have also started demanding that Coinbase provide onchain proof of Bitcoin purchases made on behalf of spot ETFs, further highlighting the industry’s growing need for transparency and trust.

Institutional Interest in Bitcoin ETFs Grows

As institutional inflows continue to soar, it’s clear that BlackRock and other major players are cementing their positions in the Bitcoin ETF space. Despite market challenges and increased scrutiny on custodial practices, the continued inflows signal that investor confidence in Bitcoin and related financial products remains high. The evolving regulatory landscape, coupled with strong institutional backing, suggests that Bitcoin ETFs could play an increasingly significant role in the broader cryptocurrency market moving forward.

Bitcoin’s ability to maintain its upward trajectory amid these developments will be closely watched, particularly as the Federal Reserve’s monetary policy continues to influence market sentiment.

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