BlackRock's Spot Bitcoin ETF Attracts $1.2 Billion in Bitcoin Since Early July
BlackRock's Spot Bitcoin ETF Experiences Strong Capital Inflow
Since the beginning of July, BlackRock's spot Bitcoin ETF, known as iShares Bitcoin Trust (IBIT), has attracted significant attention from investors. As of July 18th, the net capital inflow into IBIT reached 1600 BTC, contributing to a total of 18,600 BTC for the month. This substantial volume of assets is valued at approximately $1.2 billion.
Continuous Positive Trend Observed
For nine consecutive days, BlackRock's spot Bitcoin ETF has reported positive capital inflows, marking a notable trend in the market. This consistent performance is particularly significant given the overall skepticism among investors about the broader market, as indicated by data from Santiment.
Insights from Thomas Farrer
Thomas Farrer, co-founder of the Apollo project, shared these impressive figures. He highlighted that such a prolonged positive trend is rare in the ETF industry. Furthermore, in seven out of these nine days, the daily net capital inflow into the fund exceeded $100 million.
Historical Context and Market Sentiment
Previously, iShares Bitcoin Trust (IBIT) experienced a period with daily inflows lasting 70 days. During that time, in late April 2024, Bloomberg Intelligence analyst Eric Balchunas noted that the fund had entered the top 10 global ETFs based on this metric.
Market Dynamics and Bitcoin's Performance
Farrer emphasized the positive performance of IBIT against the backdrop of general market skepticism. Experts from the Santiment platform observed a significant decrease in positive comments about Bitcoin. Despite this, Bitcoin's price saw a slight downward correction. On July 15th, 2024, Bitcoin broke the $66,000 level and, at the time of writing, is trading above $64,400.
Continued Activity from Bitcoin Whales
Additionally, recent reports indicate that Bitcoin whales continue to accumulate the cryptocurrency. Large holders have added 1.45 BTC to their portfolios since the beginning of 2024.
Conclusion
The strong performance of BlackRock's spot Bitcoin ETF amidst a skeptical market environment highlights the unique appeal and resilience of Bitcoin as an investment asset. The continued inflow of capital and interest from large investors suggests a promising outlook for the ETF and the cryptocurrency market as a whole.