The U.S. spot Bitcoin ETF market is experiencing unprecedented activity, with inflows surpassing the $1 billion mark this week. This surge is largely attributed to the Federal Reserve’s recent rate cuts, which have sparked a significant increase in institutional demand for Bitcoin. Leading this charge is BlackRock, the asset management giant, which has dramatically expanded its Bitcoin ETF (IBIT) holdings to 198,874 shares from just 43,000 in June.
On Friday alone, the market witnessed $495 million in inflows, with more than 17,009 BTC being purchased within a week. This explosive demand is fueling speculation about a potential Bitcoin bull run as we approach the fourth quarter of 2024. With these latest developments, bullish sentiments are once again permeating the cryptocurrency space. Now, let’s delve into the noteworthy occurrences of the week!
Spot Bitcoin ETF Demand Skyrockets
The demand for spot Bitcoin ETFs has seen a dramatic increase, bolstered by high trading volumes. Ark Invest’s ARKB led the way, attracting over $203 million in inflows on Friday. Fidelity’s FBTC followed closely with $123 million, and BlackRock’s IBIT saw $111.7 million in inflows, according to data from Farside Investors. Together, these three funds scooped up 6,661 BTC from the open market in just one day.
To put this into perspective, Bitcoin’s daily production rate is only 450 BTC, making the ETF demand significantly higher than the available supply. In addition to the 17,000 BTC acquired by ETFs, MicroStrategy has also added 7,000 BTC to its holdings this week, further tightening the supply. This surge in demand has propelled Bitcoin’s price upward, with a 5% increase over the past week. At the time of writing, Bitcoin is trading at $66,071.29, with a market capitalization of $1.305 trillion. Investors are eagerly positioning themselves in anticipation of a potential Bitcoin bull run in the fourth quarter of 2024.
BlackRock’s Aggressive Buying Strategy
BlackRock, the world’s largest asset manager, has been on a Bitcoin buying spree, providing substantial support to the asset class. The company views Bitcoin as a long-term asset and a hedge against rising inflation. Recent SEC filings reveal that BlackRock has steadily increased its Bitcoin holdings through its spot Bitcoin ETF (IBIT).
In a recent portfolio filing for its Global Allocation Fund, BlackRock disclosed ownership of 198,874 IBIT shares as of July 31, up from 43,000 in June. With over $21.3 billion in inflows within just nine months since its launch, BlackRock’s Bitcoin ETF continues to dominate the market. This aggressive accumulation underscores the growing institutional confidence in Bitcoin as an asset class, setting the stage for potentially significant price movements in the upcoming months.
