BlackRock’s Bitcoin ETF See Record Inflows and Trading Volume

As Bitcoin gets close to a new all-time high, ETF flows have increased significantly

BlackRock’s iShares Bitcoin Trust (IBIT) has experienced a surge in trading volume and inflows, indicating growing investor confidence in the cryptocurrency market and potentially hinting at a “fear of missing out” (FOMO) rally. On Tuesday, IBIT recorded a staggering $3.36 billion in trading volume, its highest level in six months, alongside a massive $642.87 million inflow, the largest in over seven months. This surge in activity contributed significantly to the overall $870 million inflow into US Bitcoin ETFs on the same day, the highest since June.

The remarkable performance of BlackRock’s Bitcoin ETF, coupled with Bitcoin’s price hovering above $72,000, has ignited optimism about a potential new all-time high for the cryptocurrency in the near future. Bloomberg analyst Eric Balchunas, in his X post, pointed out the unusual nature of the high trading volume alongside a 4% price increase in Bitcoin. He stated: “$IBIT traded $3.3b today, the biggest number in 6mo, which is a bit odd bc BTC was up 4% (typically ETF volume spikes in a downturn/crisis). Occasionally, tho volume can spike if there’s a FOMO-ing frenzy (a la $ARKK in 2020). Given the surge in price past few days, my guess is this is the latter, which means look for (more) big inflows this week. We’ll see tho!”

Source: X

This observation suggests that the surge in IBIT’s trading volume may not be solely driven by institutional investors but also by retail investors rushing to buy Bitcoin as its price climbs, fearing they might miss out on further gains.

BlackRock’s influence in the Bitcoin market is undeniable. CEO Larry Fink highlighted IBIT’s impressive growth to a $23 billion market in just nine months, a testament to the firm’s commitment to the cryptocurrency space. BlackRock’s recent acquisition of over $680 million in Bitcoin and its collaborations with prominent Bitcoin proponents like MicroStrategy further solidify its position as a major player.

Bitcoin ETFs Drive Market Momentum and Bull Flag Breakout

The surge in Bitcoin ETF inflows has been a significant catalyst for the cryptocurrency’s recent price rally. According to market analysis firm Ecoinometrics: “The only thing that matters with the ETFs is how many bitcoins they accumulate over a fixed period of time. It is about demand pressure. Right now the pressure is the strongest it has been since March. Over the past 12 months, ETFs have been the main driver of Bitcoin’s uptrend.”

Source: X

This analysis highlights the crucial role of Bitcoin ETFs in driving demand and fueling the upward price trend.

Bull flag Breakout?

Also, prominent crypto analyst Rekt Capital, in response to Bitcoin’s recent price action, posted: “That’s a phenomenal Bull Flag breakout,” referencing his earlier prediction where he indicated: “#BTC Having just successfully retested the Channel Top into new support there’s scope for BTC to form a Bull Flag here, if needed (blue). The main takeaway here is that $69,000 is a clear resistance that needs to be breached for additional upside.” That has now been achieved.

Source: X

This analysis suggests that Bitcoin has broken out of a bullish flag pattern, a technical indicator that often precedes further price increases. The successful retest of the channel top as support and the breach of the $69,000 resistance level further strengthen the bullish outlook.

Ethereum ETFs Gain Traction

While Bitcoin remains in the spotlight, Ethereum ETFs are also experiencing increased interest. On Tuesday, US Ethereum ETFs recorded a $7.65 million inflow, led by BlackRock’s ETHA ETF with $13.62 million. This growing demand for Ethereum ETFs demonstrates that investors are diversifying their cryptocurrency portfolios and recognizing the potential of other digital assets.