The demand for spot Bitcoin ETFs in the US has surged following the Federal Reserve’s rate cuts, with BlackRock ramping up its Bitcoin investments. The market for spot Bitcoin ETFs has been heating up rapidly, as institutions rush to secure their share of Bitcoin. On Friday alone, inflows into Bitcoin ETFs reached an impressive $495 million, bringing the total weekly inflows to over $1 billion. Recent reports indicate that BlackRock continues to expand its holdings in its own ETF, IBIT.
Strong Demand for Spot Bitcoin ETFs
In the wake of the Fed’s rate cuts, the demand for spot Bitcoin ETFs has skyrocketed, with inflows increasing daily, supported by high trading volumes. This surge in demand has allowed regulated ETF products to acquire over 17,009 BTC just this week, demonstrating strong institutional participation in Bitcoin ETFs.
Ark Invest’s ARKB led the way for the second consecutive day, reporting more than $203 million in inflows on Friday. Fidelity’s FBTC followed in second place with $123 million, while BlackRock’s IBIT came in third with $111.7 million in inflows, according to data from Farside Investors. Together, these three players removed 6,661 Bitcoins from the open market on Friday.
Compared to a daily Bitcoin production of 450 Bitcoins, the demand for Bitcoin ETFs is exceptionally high. In addition to the 17,000 Bitcoins acquired by exchange-traded funds, MicroStrategy alone purchased 7,000 Bitcoins this week.
Bitcoin Prices on the Rise
This growing demand explains why Bitcoin prices have seen significant movements, gaining 5% over the past week. As of the latest updates, BTC is trading at $66,071.29, up 1.16%, with a market cap of $1.305 trillion. This surge indicates that investors are preparing for an anticipated bull run in Q4 2024.
BlackRock’s Aggressive IBIT Purchases
BlackRock, the world’s largest asset manager, has been actively purchasing Bitcoin, providing substantial support to the asset class. The firm views Bitcoin as a long-term asset and a hedge against rising inflationary pressures.
According to the latest SEC filings, BlackRock has increased its holdings in its spot Bitcoin ETF (IBIT) for its global allocation fund. As of July 31, the firm reported owning 198,874 shares of IBIT, a significant increase from the 43,000 shares held in June.
With over $21.3 billion in inflows since its launch nine months ago, the BlackRock BTC ETF is now a dominant player in the market.
- Pratibha Ranta’s Movie “Laapataa Ladies” Selected for Oscars 2025
- Kangana Ranaut Opposes Controversial Cable Car Project in Himachal Pradesh
