Isabella García
Despite a recent dip in Bitcoin’s price, BlackRock Bitcoin ETF attracted $329 million in new investments on Monday, signaling strong interest from institutional investors. Even as Bitcoin’s value fell below $67,000, IBIT’s inflows helped U.S.-based spot Bitcoin ETFs maintain positive net flows for the day.
Data from Farside Investors showed that spot Bitcoin ETFs accumulated over $2.5 billion in inflows on Monday, marking the seventh consecutive day of net positive flows.
The impressive performance of IBIT highlights how institutional investors are increasingly viewing Bitcoin ETFs as a safer and more efficient way to gain exposure to Bitcoin. This demand has resulted in a consistent streak of gains for Bitcoin ETFs over the past week.
Among the available options, BlackRock’s IBIT stands out as a top choice for investors, capturing over $1 billion in new capital just last week. This figure represents nearly half of the total net inflows into U.S. spot Bitcoin ETFs, underscoring its appeal for those who prefer Bitcoin exposure without directly owning the cryptocurrency.
Bloomberg’s ETF analyst, Eric Balchunas, highlighted IBIT’s remarkable progress, noting that its year-to-date inflows have now surpassed those of Vanguard’s Total Stock Market ETF, placing IBIT third overall. Achieving this within just ten months of its launch, IBIT’s total Bitcoin holdings as of October 18 reached $26.5 billion, based on BlackRock’s updated data.
Fidelity’s Bitcoin Fund (FBTC) also benefited from the rising institutional interest, securing a $6 million inflow on Monday. This further indicates sustained enthusiasm among institutional investors.
However, other major Bitcoin ETFs saw mixed results. Funds managed by Bitwise, ARK Invest/21Shares, VanEck, and Grayscale (GBTC) experienced a collective outflow of over $40 million, with some recording no new inflows.
Uncertain Market Outlook
Even with the consistent inflows into Bitcoin ETFs, the overall crypto market remains unpredictable. Bitcoin surged to $69,500 earlier this week but then dropped below $67,000. As of the latest update, Bitcoin is trading at around $67,500, reflecting a 2% decrease in the past 24 hours.
Market analysts caution that further volatility could be on the horizon, influenced by global geopolitical tensions and the upcoming U.S. elections. These factors could add pressure to an already unstable market environment.
Nevertheless, the steady stream of investments into IBIT and other ETFs suggests that institutional investors are maintaining a long-term bullish view on Bitcoin, despite short-term uncertainties.
