BlackRock's iShares Bitcoin Trust has recorded 16 consecutive days of capital inflows as Bitcoin prices surged to $97,000 on Tuesday, highlighting growing institutional interest in cryptocurrency despite market volatility.
What to Know:
- BlackRock's Bitcoin ETF has attracted nearly $5 billion in new capital since April 9
- Bitcoin briefly topped $97,500 during early trading on May 7 before settling at $96,538
- New Hampshire became the first U.S. state to pass strategic Bitcoin reserve legislation on May 6
The investment giant's fund added approximately 280 Bitcoin worth $36 million on Monday alone, according to data from HODL15Capital. This persistent influx of capital stands in stark contrast to other U.S. spot Bitcoin ETFs, which have experienced outflows or zero activity since May 1, based on Farside Investors' tracking.
ETF Store President Nate Geraci highlighted the significance of the inflow streak on social media. "I remember when naysayers didn't think spot Bitcoin ETFs would take in $5 billion in total last year," Geraci noted. "IBIT alone has done this in a few weeks, more than a year after launch."
The BlackRock fund, trading under the ticker IBIT, has accumulated approximately $4.7 billion since its last outflow day on April 9.
This impressive performance comes despite Monday's aggregate market outflow of $86.4 million, primarily driven by Grayscale's GBTC shedding nearly $90 million, effectively offsetting BlackRock's gains.
Market Implications and Related Developments
Bloomberg ETF analyst Eric Balchunas views the sustained interest as promising for cryptocurrency's institutional adoption. "It is a really good sign for the long term," Balchunas commented, adding that it "inspires confidence in our call that BTC ETFs will have triple gold's [ETF's] AUM [assets under management] in 3 to 5 years."
The cryptocurrency investment landscape continues to evolve rapidly. BattleShares filed paperwork on Monday for four new ETFs designed to create various investment positions between Bitcoin, Ethereum, and gold. One proposed fund specifically aims to go long on Bitcoin while shorting Ethereum.
"A new ETF is going to go long Bitcoin and short Ether," Balchunas observed about one of the proposed funds. "The ticker should be MAXI."
Bitcoin's price performance has shown renewed strength, briefly exceeding $97,500 during early Tuesday trading. The cryptocurrency subsequently retreated to $96,538 at time of reporting, according to CoinGecko data, representing a 2.2% daily increase.
Several factors potentially contributed to the price movement. New Hampshire legislators passed the first state-level strategic Bitcoin reserve legislation on Monday, potentially opening the door for similar initiatives elsewhere. "The odds of multiple states passing Strategic Bitcoin Reserve legislation into law just went up by a massive amount today," noted Satoshi Action Fund co-founder and CEO Dennis Porter.
Market sentiment may have received additional support from diplomatic developments. Reports indicate the United States and China are scheduled for high-level trade discussions in Switzerland this weekend, according to the Washington Post. U.S. Treasury Secretary Scott Bessent confirmed the meetings on social media, writing: "We will meet on Saturday and Sunday to discuss our shared interests. The current tariffs and trade barriers are unsustainable, but we don't want to decouple. What we want is fair trade."
Closing Thoughts
BlackRock's Bitcoin ETF continues to demonstrate remarkable investor demand amid broader market fluctuations. The persistent inflows, coupled with Bitcoin's price resilience above $96,000 and regulatory developments like New Hampshire's Bitcoin reserve legislation, suggest growing institutional comfort with cryptocurrency assets despite ongoing volatility.