The demand for the US spot Bitcoin ETF market has increased due to the Federal Reserve’s rate reduction and BlackRock’s increased BTC holdings.
The US spot Bitcoin ETF market has been rapidly heating up in response to the Fed rate cut announcements as institutions scramble to secure their share of BTC.
BTC ETF inflows reached an astonishing $495 million in a single day on Friday, bringing the total weekly inflows to over $1 billion. BlackRock‘s most recent report also indicates that it is increasing its holdings of its own ETF, IBIT.
Spot Bitcoin ETFs That Are In Demand
Demand for the spot Bitcoin ETF has surged in response to the Fed rate cuts, as inflows continue to increase daily, bolstered by high trading volumes.
This demonstrates that the regulated ETF products have collected over 17,009 BTCs this week despite significant demand. This plainly emphasizes the substantial institutional involvement in BTC ETFs.
Ark Invest’s ARKB maintained its position as the field leader for the second day in a row, with inflows exceeding $203 million on Friday.
BlackRock’s IBIT ranked third with $111.7 million in inflows, while Fidelity’s FBTC was second with $123 million in inflows, according to data from Farside Investors. On Friday, these three traders removed 6,661 Bitcoins from the open market.
The demand for Bitcoin ETF is exceedingly high compared to the daily BTC production of 450 Bitcoins. In addition to the 17,000 Bitcoins that exchange-traded funds have acquired, MicroStrategy has also taken away 7,000 Bitcoins this week.
This is why the Bitcoin price has been experiencing significant fluctuations, with a 5% increase over the past week.
At the time of publication, the BTC price is trading at $66,071.29, representing a 1.16% increase, with a market capitalization of $1.305 trillion. Investors are anticipating the anticipated bull run in Q4 2024, which is why this surge has occurred.
BlackRock acquires IBIT
The asset class has received significant support from the world’s largest asset manager, BlackRock, which has recently been on a Bitcoin purchasing spree. It is undoubtedly considering Bitcoin as a long-term asset and a hedge against the increasing inflationary pressure.
The asset manager has acquired additional shares of its spot Bitcoin ETF (IBIT) for its global allocation fund, as indicated by the most recent SEC filing. BlackRock is consistently increasing its Bitcoin holdings for its in-house funds.
The firm reported that it owned 198,874 shares of IBIT as of July 31, a significant increase from the 43,000 shares held in June, in a portfolio filing for its Global Allocation Fund on Friday.
The BlackRock BTC ETF has dominated the market with over $21.3 billion in inflows in the nine months since its debut.
