As a seasoned researcher who has witnessed the evolution of the financial industry over the past two decades, I must admit that I am both intrigued and impressed by BlackRock’s Bitcoin ETF performance. The inflow of $2.2 billion in just a week is an unprecedented feat, especially for such a young fund. It’s like watching a fledgling bird outperforming the veterans in a race.
BlackRock’s Bitcoin ETF is currently dominating the competition among investment management firms, with a staggering $2.2 billion influx in just one week. This ETF has managed to surpass 13,227 similar products globally by achieving the highest rank.
BlackRock Bitcoin ETF And The Global Lead
Eric Balchunas, a Senior ETF Analyst with Bloomberg, noted that BlackRock’s iShares Bitcoin Trust (IBIT) surpassed all other ETFs worldwide in terms of cash generation. Notably, this achievement overshadowed established funds like the Vanguard S&P 500 ETF (VOO), iShares Core S&P 500 ETF (IVV), and iShares Core US Aggregate Bond ETF (AGG).
Among the total of 13,227 Exchange-Traded Funds (ETFs), including well-established ones like VOO, IVV, and AGG, IBIT managed to gather more cash inflows than any other ETF during the past week. It’s quite challenging for even an established ETF, let alone a relatively new one, such as IBIT (only 3 months to 1 year old), to outperform these long-standing cash magnets over a single week.
— Eric Balchunas (@EricBalchunas) October 31, 2024
BlackRock IBIT’s weekly flow of $2.287 billion was followed closely by Fidelity Total Bond ETF (FBND) at $2.253 billion. Considering that the Bitcoin ETF is barely nine months old, this feat is considered a major milestone for the asset manager. On Tuesday, IBIT’s trading volume hits $3.3 billion, hitting its six-month high levels. The consistent magnitude of the inflows suggest that institutional Fear of Missing Out (FOMO) has kicked in. This is understandable considering the US Presidential Election is only a few days away.
In a subsequent article, Balchunas pointed out that U.S. ETFs are just $100 billion away from setting a new annual flow record. If the current daily inflow rate of $4 billion continues, these funds could reach approximately $970 billion – not far from the $1 trillion mark. At this potential size, U.S. Bitcoin ETFs would effortlessly surpass their previous high of $910 billion.
ETF Impact on Bitcoin Valuation
Over the last several days, Bitcoin (BTC) has shown a significant recovery, most notably with its price peaking at around $73,300. Furthermore, on-chain diagrams suggest that Bitcoin’s price has formed a “golden cross,” which indicates promising future growth.
The Golden Cross is a bullish indicator formed when the 30-DMA crosses above the 365-DMA is a potential trend continuation. It is usually a sign that a new rally may be around the corner.
According to CoinMarketCap’s latest figures, the price of Bitcoin stands at approximately $69,911.07. There has been a 3.93% decrease in the last 24 hours. Notably, Bitcoin is just 5% away from its previous all-time high (ATH). If BlackRock maintains its substantial Bitcoin ETF investments, it could potentially impact Bitcoin’s future worth.
As a crypto investor, I’ve been steadily acquiring Bitcoins for my portfolio. This consistent buying could potentially create a scarcity situation, which historically has had a significant impact on Bitcoin’s price trajectory in the long run.
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2024-11-01 00:50