BlackRock’s Bitcoin ETF Leads $534M Inflow, Biggest In 7 Weeks

Spot Bitcoin ETFs are once again in favor of institutional investors this week, with Monday, July 22nd posting the biggest daily inflow since June 4th.

A whopping $533.6 million flowed into four of the eleven spot BTC ETFs listed in the United States, according to preliminary data from Farside Investors. There have now been 12 consecutive days of entries.

However, retail trading in the spot markets is going in the other direction at the moment.

Bitcoin ETF Flow (Millions of US Dollars) – 2024-07-22

TOTAL NET HORSEPOWER: 533.6
(provisional data)

IBIT: 526.7
FBTC: 23.7
BITB:
ARKB: 0
BTC: 13.7
EZBC: 7.9
BRRR: 0
HODL: -38.4
BTCW: 0
GBTC: 0
DEFINITION: 0

For full details and disclaimers visit: https://t.co/4ISlrCgZdk

— Farside Investors (@FarsideUK) July 23, 2024

BlackRock leading the way

The BlackRock iShares Bitcoin Trust (IBIT) held 98.7% of that total with $526.7 million, equivalent to 7,759 BTC. It was also BlackRock’s biggest day of inflows since March.

IBIT currently has 327,179 BTC worth about $22 billion, according to the official website. This makes it the world’s leading BTC fund, with $3.5 billion more than Grayscale’s GBTC, which has 272,061 BTC.

Tolou Capital Management founder Spencer Hakimian noted that IBIT has outperformed the Invesco QQQ ETF that tracks the performance of the Nasdaq-100. Vanguard’s Total Stock Market ETF could also happen very soon, he said before adding: “The demand for Bitcoin through ETFs has been relentless. Really unprecedented.”

IBIT has passed QQQ on YTD net flows. And Vanguard’s Total Stock Market ETF could happen very soon, too. Compare the net sizes of these ETFs with the net inflows. Demand for Bitcoin via ETFs has been relentless. Truly unprecedented. pic.twitter.com/CyD3p7c9CX

— Spencer Hakimian (@SpencerHakimian) July 22, 2024

There was a small entry for Fidelity’s FBTC and an exit from the VanEck Bitcoin Trust (HODL), but BlackRock dominated the day. The big move builds on last week’s momentum for the ETF, which saw inflows of more than $1.2 billion over five trading days.

It also comes a day before Ethereum ETFs begin trading. Analyst Willy Woo said this may be bearish for Bitcoin in the short term.

“Some capital from BTC ETFs may flow into ETH ETFs, it’s hard to estimate how much, but that’s a risk.”

In the two months following the launch of spot Bitcoin ETFs in mid-January, BTC surged 62% to hit an all-time high in mid-March.

If the same thing happens with Ethereum after today’s releases, ETH could reach $5,300 by the end of September.

Withdrawal from specific markets

Crypto market capitalization has declined by 2% over the past 24 hours to $2.53 trillion. Bitcoin lost 1.4% in a dip to $66,600, where it found support at the time of writing. There is further support at the $65,000 level if markets decline further.

Ethereum was also losing ground on the ETF’s launch day, down 1.3% on the day to $3,450. Analysts have predicted that ETH could retreat further after the ETF launch.

Altcoins were largely in the red, with bigger drops for Dogecoin (DOGE), Toncoin (TON), Avalanche (AVAX), Tron (TRX), Chainlink (LINK), and Polkadot (DOT).

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