BlackRock ETF Records Largest Inflow in 35 Days as Bitcoin Weekly Rally Pauses

August 27, 2024 06:08 PM AEST | By Team Kalkine Media

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BlackRock ETF Records Largest Inflow in 35 Days as Bitcoin Weekly Rally Pauses — Image source: shutterstock

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BlackRock's iShares Bitcoin Trust ETF (IBIT) recorded its largest daily net inflow in 35 days on August 26, amounting to $224.1 million. This surge in inflows coincided with Bitcoin’s price dipping slightly below $64,000 following a significant weekly rally.

On August 25, {Bitcoin} (BTC) had reached a high of $64,475, marking its peak for the month, before retreating to $63,031, a decline of nearly 2% from the previous day's high of $64,121. This price movement followed a notable weekly increase from a low of $58,756.

The inflows into IBIT contributed to a combined net inflow of $202.6 million across the 11 U.S. spot Bitcoin ETFs. In contrast, similar funds from issuers such as Bitwise, Fidelity, and VanEck experienced total net outflows of $32.1 million. The Franklin Bitcoin ETF (EZBC) and the WisdomTree Bitcoin Fund (BTCW) were the only other ETFs to report net inflows, at $5.5 million and $5.1 million, respectively.

In contrast, U.S.-based Ether ETFs faced joint net outflows of $13.2 million, as Ether's price fell by 2.22% to $2,686 over the same period.

The substantial inflows into IBIT on August 26 followed a strong performance by Bitcoin investment products for the week ending August 23. According to CoinShares, these products recorded the highest weekly inflows in the past five weeks, with Bitcoin-related products leading the way at $543 million. IBIT was the top performer, capturing $318 million of this total.

James Butterfill, Head of Research at CoinShares, attributed the increased interest in cryptocurrency products to market anticipation that the U.S. Federal Reserve might cut interest rates, following comments from Fed Chair Jerome Powell on August 21 suggesting rate cuts in September.

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