Bitcoin Mania Draws a Record $520 Million Inflow Into BlackRock’s ETF
- BlackRock’s iShares Bitcoin Trust drew $520 million in a single day on Tuesday, per Bloomberg.
- The surge marked the second-largest daily inflow for a US ETF.
- Bitcoin is climbing toward its previous all-time high, trading around $62,000 on Thursday.
Bitcoin’s latest rally toward all-time highs fueled the second-largest daily inflow into a US exchange-traded fund this week.
BlackRock’s iShares Bitcoin Trust (IBIT) absorbed $520 million in a single day on Tuesday, marking not only the largest daily influx among ETFs tracking the world’s top cryptocurrency but also the second-largest daily cash infusion for a US ETF, according to data compiled by Bloomberg.
The rush of money came as bitcoin stages a fresh rally back toward it’s previous all-time high of $69,000. The token was up another 5% on Thursday, trading around $63,000.
The nearly dozen spot bitcoin ETFs in the market were approved in early January, and touted as an easier access point for investors looking for exposure to the token without having actually to buy it.
BlackRock’s ETF has seen inflows for 32 days in a row.
Analysts told Bloomberg that the rally was “definitely” driven by retail traders with a growing appetite for the slate of bitcoin ETFs, and their robust demand is pushing up the price of the underlying crypto.
Also bolstering the rally this month is anticipation for bitcoin’s halving event this spring. In April, the amount of bitcoin rewarded to miners will be reduced by half. The periodic event drives the scarcity narrative that’s at the heart of the long-term bull base as the crypto marches toward its supply cap of 21 million.
Previous halving events were followed by new all-time highs within 12 months.
