The Growth of Inflows Into BlackRock’s Bitcoin ETF
Recent data shows a significant increase in daily inflows into BlackRock’s Bitcoin ETF (IBIT), with over 224 million dollars flowing in. This marks the largest inflow into IBIT in the past 35 days.
- Overall, there was a decline in daily inflows to spot Bitcoin ETFs listed on US exchanges around mid-August.
- On specific dates like August 9 and 14, total outflows were recorded, amounting to 90 and 81 million dollars, respectively.
- Until August 22, the total daily inflows had not surpassed 90 million dollars.
- On Friday the 23rd, a significant shift occurred, with over 250 million flowing in, divided between IBIT by BlackRock and FBTC by Fidelity, closely followed by HODL by VanEck.
- Looking solely at IBIT flows, there have been no outflows throughout August.
- Although on August 8th, there were inflows of over 150 million dollars, daily inflows had not exceeded 100 million until recently.
- Despite not setting a historical record, yesterday’s inflow data represents a substantial boost for IBIT.
The Impact of BlackRock’s ETF News on Bitcoin Price
Surprisingly, the positive inflows into BlackRock’s ETF did not translate into a price surge for Bitcoin. While the BTC price had temporarily rallied from $61,000 to $65,000 on Friday, it later dipped below $64,000 over the weekend.
- The current price level is only marginally higher than before the brief spike on Friday, indicating other factors at play beyond ETF inflows.
The Trend of the Dollar Index
The Dollar Index’s notable decline since July, hitting its 2024 annual low, should ideally translate to a bullish Bitcoin price. However, Bitcoin experienced downward trends during the same period despite the weakening dollar.
- After climbing back above $60,000 in early August, Bitcoin’s price stability might be interrupted by recent ETF inflows.
- Expect increased volatility and a possible short-term bull run in the days ahead.
Insights on Ethereum ETFs
The introduction of Ethereum spot ETFs on US exchanges since mid-July has seen lackluster performance compared to Bitcoin ETFs, with consistent daily outflows in recent days.
- While Bitcoin ETFs have attracted over 840 million dollars in inflows since August 8, Ethereum ETFs have recorded outflows totaling more than 90 million dollars.
- This stark contrast underscores Bitcoin’s dominance in the crypto market, with a 57% share.
Ethereum Price Analysis
Following the launch of Ethereum spot ETFs, the price of ETH has dipped from over $3,400 to under $2,700, signaling a challenging period for Ethereum and altcoins compared to Bitcoin’s relative stability.
- On August 5th, Ethereum dropped below $2,200, a price level unseen since late January, highlighting Ethereum’s struggle compared to its performance earlier in the year.
- Bitcoin’s price, on the other hand, remains higher than its late February levels, indicating differing trends in the two major cryptocurrencies.
Hot Take: An Overview of Recent Developments
Despite the positive inflows into BlackRock’s Bitcoin ETF, the crypto market remains unpredictable with Bitcoin price fluctuations and contrasting trends between Bitcoin and Ethereum. Stay informed and brace for potential market shifts in the upcoming days.
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