On August 26, amidst a minor fall in Bitcoin’s price, BlackRock’s Bitcoin-focused ETF, iShares Bitcoin Trust ETF (IBIT), recorded an impressive daily net inflow of $224.1 million. This surge reveals growing investor trust in IBIT, despite Bitcoin price fluctuation.
Even though Bitcoin’s price slipped by roughly 2% over a 24-hour period, investor confidence remains unshaken. This shows in the continued $1 trillion-plus market capitalization and a substantial recovery over recent weeks.
In the U.S., 11 Bitcoin spot ETFs reported a combined daily net inflow of $202.6 million, primarily energized by the considerable inflow for IBIT. However, Bitwise, Fidelity, and VanEck ETFs noted total net outflows of $32.1 million.
Conversely, the Franklin Bitcoin ETF (EZBC) and WisdomTree Bitcoin Fund (BTCW) secured net inflows of $5.5 million and $5.1 million respectively.
BlackRock’s Bitcoin ETF thrives amid price dip
This hints at prolonged interest for Bitcoin ETFs in the U.S., further evidenced by a stable inflow for ProShares Bitcoin ETF (BITO).
Despite witnessing outflows of $13.2 million as Ether’s value dropped, and volatility across different ETFs, Bitcoin remains a vital area of interest for both institutional and retail investors. This promises further growth for the digital asset.
Over the last week of August, IBIT ETF saw the highest weekly inflow in the past five weeks, amounting to $318 million. Institutional investors primarily fueled this surge, taking the total inflow into Bitcoin investment products to around $4.2 billion year-to-date, an increase of nearly 13% since 2021 began.
James Butterfill, head of research, speculates that last week’s cryptocurrency buying frenzy may have been prompted by hints of possible rate cuts by the US Federal Reserve. This speculation was sparked by Jerome Powell, the Fed Chair, hinting at potential rate reductions in September during an August 21 meeting.
