BlackRock Bitcoin ETF Enters Top 3 Amid $23 Billion Inflow

The spot Bitcoin ETF inflows have accelerated since the past week and refuse to stop anytime soon. On Monday, BlackRock’s iShares BTC ETF (IBIT) created a milestone taking its total inflows to more than $23 billion since inception. This puts IBIT among the top three ETFs by inflows, launched in 2024.

BlackRock Bitcoin ETF Hits Fresh Milestone

Last week, the US BTC ETF clocked more than $2 billion in inflows suggesting a huge institutional demand for the asset class. On Monday, October 21, the total inflows stood at $294 million with BlackRock’s IBIT single-handedly stealing the show. Yesterday, IBIT clocked $329 million in inflows while the rest of other ETFs recorded zero or net outflows.

Just over the past six trading sessions, IBIT has registered inflows totaling $1.5 billion. Bloomberg ETF strategist Eric Balchunas stated that this has been the best week for BlackRock Bitcoin ETF as it now surpasses VIT to occupy a place among the top three ETFs by inflows in 2024. Furthermore, IBIT assets under management have now crossed $26 billion which is the top 2% of all ETFs.

$IBIT had one hell of a week, +$1.1b in new cash, best week since March, passed $VTI for 3rd place overall in YTD flows (insane for new launch, esp late in year, the rest of the top 5 is each over 20yrs and old and over $300b. $IBIT‘s aum is $26b which is in top 2% of all ETFs. pic.twitter.com/KX7eD3EzFP

— Eric Balchunas (@EricBalchunas) October 21, 2024

However, these strong ETF inflows haven’t had much impact on the BTC price as it failed to surge past the crucial resistance of $69,000. The Bitcoin price is once again facing selling pressure trading 2.29% down at press time, at $67,528.79. However, the daily trading volume has surged 60% to $37 billion.

Market analysts at Bitfinex suggest that Bitcoin could see a delayed effect of the ETF inflows. They stated:

“ETF inflows can have a muted impact for a few days, and then the market reverses lower once the aggression from spot market buyers fades”.

Donald Trump Trade in Play?

As the odds of Donald Trump’s victory improve, market analysts say that the massive Bitcoin ETF inflows suggest that the Trump trade is in play. As per Polymarket data, Trump’s victory odds have improved to a massive 63.5% against Kamala Harris.

Courtesy: Polymarket

Ryan Lee, Chief Analyst at Bitget Research, noted that institutional interest is evident, with six consecutive days of inflows signaling strong momentum. Lee added:

“The main drivers are Trump’s rising odds of winning the election and a technical rebound in Bitcoin’s price. Trump is a known supporter of Bitcoin, and his increasing odds of winning are seen as a positive signal for the market”.

Additionally, the recent approval of Bitcoin ETF options by US SEC could further boost greater liquidity into ETFs. “With the SEC’s approval of ETF options, we believe this will provide the ETF with the needed liquidity to attract sustainable inflows,” noted QCP Capital.

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