BlackRock’s IBIT Bitcoin ETF Sees Record Inflows as Bitcoin Hits All-Time High
BlackRock’s IBIT spot bitcoin exchange-traded fund (ETF) experienced record daily inflows of $788.3 million on Tuesday as the price of bitcoin reached a new all-time high above $69,000 for the first time since November 2021. The inflows into IBIT were 30% higher than its previous record set on February 29, surpassing the total net inflows of all U.S. spot bitcoin ETFs combined on Monday.
- IBIT’s inflows reached $648.4 million on Tuesday, the highest since February 28 and the third-largest since launch.
- Despite outflows from Grayscale’s converted GBTC fund, the net inflows for all spot bitcoin ETFs amounted to $648.4 million on Tuesday.
Fidelity’s FBTC and Ark Invest 21 Shares also saw significant inflows, while Invesco’s BTCO was the only fund to witness outflows. The total net inflows for all spot bitcoin ETFs since their launch on January 11 now stand at over $8.5 billion.
Spot Bitcoin ETFs Achieve Record Daily Trading Volumes
Trading volume for U.S. spot bitcoin ETFs also reached a record high of $9.75 billion on Tuesday, surpassing the previous record volume set on February 28. BlackRock’s IBIT led the trading volume with a record of $3.76 billion, followed by Grayscale’s GBTC and Fidelity’s FBTC with $2.81 billion and $2.05 billion, respectively.
- The ten Bitcoin ETFs achieved a cumulative trading volume approaching $90 billion.
Bitcoin Breaks Previous All-Time High
The price of bitcoin finally surpassed its previous all-time high of $69,000 after 846 days. Bitcoin has risen nearly 350% since hitting a low of above $15,000 in November 2022, gaining around 70% this year alone.
- The price of bitcoin subsequently fell within minutes, dropping by over $10,000 to a low of around $59,225. This led to over $1 billion in liquidations over the past 24 hours.
- Bitcoin has since recovered and is currently trading at $66,302.
Hot Take: Bitcoin ETFs Drive Record Inflows and Trading Volume 🚀
The surge in inflows and trading volume for spot bitcoin ETFs demonstrates the growing interest and adoption of cryptocurrencies among investors. The record-breaking inflows into BlackRock’s IBIT ETF highlight the demand for exposure to bitcoin as it reaches new all-time highs. Additionally, the significant trading volume indicates that investors are actively buying and selling bitcoin through these ETFs.
However, the volatility in the price of bitcoin also poses risks for investors. The sharp drop after reaching the all-time high showcases the potential for sudden price fluctuations and market corrections. It is crucial for investors to carefully consider their investment strategies and risk tolerance when investing in cryptocurrencies.
Despite these risks, the success of spot bitcoin ETFs signals a positive development for the crypto industry as it gains mainstream recognition and attracts institutional investors. The increasing assets under management and trading volumes demonstrate that cryptocurrencies are becoming an established asset class in the financial markets.
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