BlackRock’s bitcoin ETF broke inflow records
Bitcoin (BTC) exchange-traded funds (ETFs) in the United States reported inflows of more than $893 million, the sixth consecutive day with positive capital flows. However, the salient data of the day is that BlackRock’s financial instrument set a record for money inflows.
According to data from SosoValue, More than $872 million entered the iShares Bitcoin Trust (IBIT)the world’s largest bitcoin fund. In this way, it exceeded the 848 million dollars that it had reported in March 2024.
As for the rest of the funds, Fidelity’s Fidelity Wise Origin Bitcoin Fund (FBTC) had inflows of $12 million while VanEck’s VanEck Bitcoin ETF (HODL) reported inflows of $4 million.
Meanwhile, Ark & 21Shares’ ARK 21Shares Bitcoin ETF (ARKB), Grayscale’s Grayscale Bitcoin Mini Trust (BTC), and Invesco Galaxy Bitcoin ETF (BTCO) reported inflows of more than $7 million.
The Bitwise Bitcoin ETF (BITB) from the Bitwise firm had money outflows of more than $23 million. As for the rest of the funds, they did not register income or outflows of capital in the last day.
Since its launch on the market, The 12 ETFs accumulate money inflows of more than 24 billion dollars.
In this regard, Rachael Lucas, cryptocurrency analyst at BTCMarkets, said that this rise in the BlackRock ETF is driven by several factors, including “the global shift by central banks toward lowering interest rates, which has boosted liquidity and made capital more accessible to investors.” ”.
In times of lower interest rates, the yield on Treasury bonds, known to be “the safest investment in the world,” falls. That is why investors tend to migrate their holdings towards assets considered risky such as stocks, BTC and cryptocurrencies, with the aim of obtaining higher returns.
Thanks to the good performance of these financial instruments, The price of bitcoin remained above $72,000. At the time of publication of this note, the price of the digital currency created by Satoshi Nakamoto is $72,569.
As CriptoNoticias has explained, Spot ETF movements directly influence BTC price. Due to their operation, the companies that manage these financial instruments need to have the digital asset in their treasuries to maintain adequate support for their funds.
If there is demand for bitcoin ETFs, Companies must go to the market to buy more BTC. By simple law of supply and demand, that causes the price of the digital currency to rise.
According to data from Eric Balchunas, Bloomberg financial analyst, ETFs are close to overtaking Satoshi Nakamoto with the largest BTC holders.
From January to date, they have already accumulated a total of 983,334 BTC, leaving only 16,666 BTC from the wallet attributed to the BTC creatorwhich contains one million BTC.
Finally, it is important to highlight that these large movements of money that were registered in recent days They arise from the expectations generated in the market by the upcoming presidential elections in the United States.which will take place starting next November 5.
Republican candidate Donald Trump and Democratic candidate Kamala Harris expressed their support for the cryptocurrency sector and promised policies to encourage the growth of the industry.