BlackRock Bitcoin ETF Sees Largest Inflow At $1 Billion Soon After Fed Rate Cut

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As a seasoned analyst with over two decades of experience in the financial markets, I’ve witnessed numerous groundbreaking events that have reshaped the industry. However, the meteoric rise and unstoppable momentum of the BlackRock Bitcoin ETF (IBIT) is undeniably one for the history books.

Day after day, the BlackRock Bitcoin ETF (IBIT) is breaking new highs and recording its biggest single-day influx of over $1 billion on Thursday. This massive surge in investment has pushed the total inflows for IBIT to more than $27 billion since it was launched in January, positioning it among the most successful ETF launches of 2024. The decision by the Federal Reserve to lower interest rates seems to have served as a significant boost for these impressive inflows.

The BlackRock Bitcoin ETF Seems Unstoppable

On Thursday, November 7th, the combined investments in U.S. Bitcoin Spot ETFs reached an impressive $1.371 billion, with a total of 17,880 Bitcoins being purchased across nine different ETFs in just one day. This is approximately 40 times greater than the daily production of 450 Bitcoins. This significant increase followed yesterday’s announcement by the Fed regarding a 25 basis point reduction in interest rates.

11/7: U.S. Bitcoin ETFs purchased 17,880 Bitcoin (vs. 450 BTC mined) for $1.37 Billion USD

— HODL15Capital (@HODL15Capital) November 8, 2024

For the second time, the BlackRock Bitcoin ETF (IBIT) significantly impacted the market as it amassed 14,607 Bitcoins in just one day. Moreover, on Thursday, the daily trading volume for BlackRock’s IBIT reached $1.8 billion, having previously surpassed $4.1 billion the day before. Here is a rundown of the top four largest single-day inflows into IBIT this year:

  • November 7 – $1.12 billion, 14,607 BTC
  • October 30 – $872 million, 12,127 BTC
  • March 12 – $849 million, 11,947 BTC
  • March 5 – $788 million, 12,447 BTC

After last Thursday’s events, the total value of assets managed by the BlackRock Bitcoin ETF (IBIT) has skyrocketed past $34 billion, with a significant 447,281 Bitcoins in its holdings. To put that into perspective, this is almost twice as much Bitcoin (447,281 BTC) as held by Michael Saylor’s MicroStrategy (252,220 BTC). Additionally, Fidelity’s Bitcoin ETF (FBTC) reported inflows of approximately $190 million on the previous day, according to data from Farside Investors.

As an analyst, I observed a significant shift in investor behavior following Donald Trump’s victory in the U.S. Presidential Elections. The influx of funds into spot ETFs, which had initially shown signs of outflows earlier this week, surged beyond $2 billion over the last two days post the election results. This surge indicates a strong investor optimism about Bitcoin’s potential prosperity under the Trump administration.

Bitcoin Hits Fresh All-Time High

In the midst of significant Exchange Traded Fund investments, Bitcoin’s (BTC) price soared an additional 2% today, reaching a brand-new record high of $79,943. The bulls have maintained their robust stance, successfully holding off any potential challenges at the $75,000 mark.

Given the recent price trends and approximately 10% growth over the past week, Bitcoin has found its way back into an uptrend, potentially paving the road towards prices reaching around $100,000.

As an analyst, I initially projected that the unique wave pattern of Bitcoin from March would lead us to reach around $80,000 by the end of this year, following a prolonged phase of fluctuation. I eagerly anticipate the moment when this prediction materializes and the chart can be retired, allowing me to shift my focus towards our journey aiming for the peak of the channel at $100,000.

— IncomeSharks (@IncomeSharks) November 8, 2024

Discussion surrounding a strategic U.S. Bitcoin reserve has gained traction lately. Senator Cynthia Lummis of Wyoming, along with others, have proposed a plan for such a reserve. But, it’s essential to note that an official statement from the Trump administration is needed before any action can be taken.

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2024-11-08 08:05