- BlackRock’s Bitcoin ETF saw record $520 million inflows on Tuesday, the largest daily haul for any US crypto ETF
- The fund has seen inflows for 32 straight days amid Bitcoin’s price doubling in 2023, fueling investor demand
- Some remain cautious about crypto’s volatility, but the surge in interest marks a shift in investor sentiment after 2022’s crashes
The latest crypto boom cycle continues to hit new highs. On Tuesday, BlackRock‘s Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), saw a record $520 million in inflows in a single day. This marks the largest daily haul so far among the new batch of US ETFs investing directly in the world’s biggest cryptocurrency.
Massive One-Day Influx for BlackRock’s Bitcoin ETF
The IBIT brought in $520 million on Tuesday, the biggest one-session intake for the fund since launching late last year. It was also the second-largest daily haul for any US ETF across all asset classes, according to data compiled by Bloomberg.
The flood of cash into BlackRock’s Bitcoin ETF comes amid a scorching rally for the cryptocurrency. Bitcoin prices have more than doubled since the start of 2023, recently surging past the $25,000 level to hit its highest point since last August.
Analysts say the dramatic price run-up will further fuel investor demand for crypto ETFs. “It’s very exponential. The higher bitcoin goes, the higher the flow,” said Stephane Ouellette, CEO of FRNT Financial.
32 Straight Days of Inflows
BlackRock’s Bitcoin ETF has now seen inflows for 32 consecutive trading days. Year-to-date, the fund has taken in over $1 billion in assets.
The surge of interest underscores a shift in investor sentiment toward the crypto space. Following last year’s implosion of FTX and other industry players, many had written off digital assets. But Bitcoin and other major cryptocurrencies have staged a powerful recovery in 2023.
Still, some remain wary of excessive hype and caution that crypto prices could turn volatile. “Buyer beware – assets with limited track records and weak fundamentals can see strong price appreciation in the short term,” said Meltem Demirors, CSO of CoinShares.
Conclusion
The massive inflows into BlackRock’s Bitcoin ETF provide the latest evidence of resurgent enthusiasm for crypto investing. But whether the boom times will last remains uncertain. With Bitcoin’s history of wild swings, the crypto rally could quickly reverse course. Still, for now, the demand frenzy continues.
