BlackRock’s Bitcoin ETF Gains $526 Million in a Single Day

BlackRock’s iShares Bitcoin Trust (IBIT) marked a monumental achievement this Monday, recording an inflow of $526 million. This event represents the ETF’s largest single-day gain since March 13, 2024. 

Notably, it also represents IBIT’s seventh-largest daily inflow, with 7,759 Bitcoin added to its holdings.

Bitcoin Price Action Neutral Despite Strong Inflows

Amid a daily mining output of just 450 BTC, total ETF acquisitions reached approximately 7,860 BTC, valued at around $533 million. This demand shock indicates a positive momentum for Bitcoin 

Meanwhile, IBIT has now surpassed the Nasdaq index fund QQQ in year-to-date inflows. Analysts predict that IBIT may soon eclipse Vanguard’s Total Stock Market ETF in terms of inflow volume.

“Demand for Bitcoin via ETF has been relentless. Unprecedented really,” Spencer Hakimian said on X (Twitter).

Read more: How To Trade a Bitcoin ETF: A Step-by-Step Approach

Contrasting IBIT’s success, other Bitcoin funds like Fidelity’s Wise Origin Bitcoin Fund (FBTC) and Vaneck Bitcoin Trust (HODL) reported mixed results. Specifically, FBTC garnered the second-highest inflow of the day at $23.7 million. Conversely, HODL experienced an outflow of $38.4 million, indicating varied investor confidence across different funds.

However, Bitcoin is also tackling other challenges. Notably, the infamous Mt. Gox, a historical Bitcoin exchange, moved 42,587 BTC, worth approximately $2.84 billion, into two wallets. This transfer is part of the ongoing repayment to creditors, marking another chapter in its lengthy resolution process.

Previously when Mt. Gox moved BTC to fresh wallets, crypto exchange Kraken initiated repayment to creditors. Hence, today’s transaction hints towards more repayments.

In parallel, the US government has been actively managing its Bitcoin holdings. Capitalizing on the recent price increase, it sold 58.74 BTC for roughly $3.96 million via Coinbase Prime. This year alone, the government has sold 6,261 BTC at an average price of $62,538, totaling about $392 million.

“The US government occasionally moves/sells some BTC, but the amounts are usually not significant. FUD related to the US government is often exaggerated,” Spot On Chain said.

Despite these large transactions and active market participation, Bitcoin’s price has declined by 1.33%, currently hovering around $66,745.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

However, Bitfinex analysts maintain a bullish stance in an email sent to BeInCrypto. Bitfinex analysts noted that the declining Bitcoin Exchange Reserve metric, which tracks BTC held in exchange wallets, suggests that investors are withdrawing their assets for long-term storage rather than selling. This behavior typically precedes a supply squeeze, potentially driving up prices.

“Further,  given the uncertainty brought upon by an unclear Democrat candidate, we can expect a news driven and volatility filled week with elections, Ethereum ETF launch and Mt. Gox creditors receiving coins being some of the main talking points,” Bitfinex analysts told BeInCrypto.