Bitcoin (BTC) Price Under Pressure Despite Massive Inflows of BlackRock ETF

As an analyst with over two decades of experience in the financial markets, I find myself intrigued by the latest developments in the cryptocurrency space, particularly the inflows into BlackRock’s iShares Bitcoin Trust (IBIT). Despite these significant inflows, it is clear that Bitcoin remains under bearish pressure, a fact that underscores the volatile and unpredictable nature of this digital asset class.


On Monday, BlackRock’s record-breaking iShares Bitcoin Trust (IBIT) managed to attract an eye-popping $224 million worth of inflows. 

For August 26th, the total amount transferred was approximately $202 million. Besides BlackRock’s IBIT, the Franklin Bitcoin ETF (EZBC) and WisdomTree Bitcoin Fund (BTCW) showed positive growth with inflows of around $5.5 million and $5.1 million respectively.

On Monday, there were no new investments or withdrawals for the Ark 21Shares Bitcoin ETF (ARKB), Invesco Galaxy Bitcoin ETF (BTCO), Coinshares Valkyrie Bitcoin Fund ETF (BRRR), and Grayscale’s products.

Currently, the Bitwise Bitcoin ETF (BITB) is experiencing significant withdrawals to the tune of $16.6 million. Similarly, Fidelity Wise Origin Bitcoin Fund (FBTC) and VanEck Bitcoin ETF (HODL) are also seeing losses, with FBTC losing $8.3 million and HODL losing $7.2 million.

Bitcoin remains under bearish pressure 

Despite the substantial inflows recorded by BlackRock, the price of Bitcoin remains under bearish pressure. According to CoinGecko data, it is currently changing hands at $63,191, down 1.3% over the past 24 hours. 

According to the analysis by Santiment, a decline in Bitcoin’s price led to a decrease of about 7.5% in the number of active contracts (open interest). On the other hand, significant reductions in open interest for major alternative cryptocurrencies have not been observed.

The term “open interest” refers to the total value of all outstanding derivatives contracts. 

Based on Santiment’s analysis, a sharp decline in open interest could suggest that traders are increasingly moving their focus towards alternative cryptocurrencies (altcoins).

As reported by U.Today, Bitcoin dominance is now approaching yet another multi-year high. 

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2024-08-27 09:13