This surge in demand, following a period of slowed growth in late August and early September, signals renewed institutional interest in Bitcoin and aligns with a broader market rally potentially fueled by the Federal Reserve’s recent interest rate cut.
Source: Farside Investors
Spot Bitcoin ETFs in the U.S. saw heightened demand last week, attracting over a billion dollars from investors. This continued inflow signifies increasing institutional demand for the funds, which have pulled a combined $18.8 billion in total net inflow since their debut in January.
According to SoSoValue data, spot Bitcoin ETFs witnessed a total net inflow of $494.27 million on September 27, a notable jump from the previous day’s $365.57 million. Ark Invest and 21Shares’ ARKB led the 12 funds for the second consecutive day with $203.07 million in net inflows, as Fidelity’s FBTC and BlackRock’s IBIT, the largest Bitcoin ETF by net assets, attracted $123.61 million and $110.8 million respectively.
Even Grayscale’s GBTC, which had been experiencing outflows, pulled in a surprise inflow of $26.15 million on Friday. Notably, none of the Bitcoin ETFs experienced outflows during this period.
Cumulatively, the funds have attracted $1.1 billion in weekly net inflows, a strong performance that buoyed the Bitcoin price before Monday’s expected pullback.
The U.S. spot Bitcoin ETF market is seeing a massive spike, with inflows surpassing $1 billion last week alone. Institutional demand for Bitcoin has jumped, boosted by the Federal Reserve’s rate cuts, and BlackRock is at the forefront. The asset management giant has raised its Bitcoin ETF (IBIT) holdings to 198,874 shares, a sharp increase from 43,000 in June.
This explosive demand has fueled excitement for a potential Bitcoin bull run as we head into Q4 2024. On Friday alone, $495 million flowed into Bitcoin ETFs, with over 17,009 BTC bought in just one week.
Strong Demand from Institutional Investors
The appetite for spot Bitcoin ETFs has grown significantly, backed by high trading volumes. Ark Invest’s ARKB attracted over $203 million in inflows on Friday, leading the market. Fidelity’s FBTC followed with $123 million, and BlackRock’s IBIT saw $111.7 million, according to data from Farside Investors. Together, these three funds snapped up 6,661 BTC in a single day.
This demand far exceeds Bitcoin’s daily production of about 450 BTC. In addition to the 17,000 BTC scooped up by ETFs, MicroStrategy purchased another 7,000 BTC this week, adding to the supply shortage.
Investors are eagerly positioning themselves in anticipation of a potential Bitcoin bull run in the fourth quarter of 2024.
BlackRock’s Aggressive Buying Strategy
BlackRock, the world’s largest asset manager, has been actively increasing its Bitcoin holdings. The company sees Bitcoin as a long-term asset and a hedge against inflation. According to recent SEC filings, BlackRock has steadily boosted its Bitcoin holdings through its spot Bitcoin ETF, IBIT.
In a recent portfolio update, BlackRock reported holding 198,874 IBIT shares as of July 31, up from 43,000 in June. With over $21.3 billion in inflows since its launch just nine months ago, BlackRock’s Bitcoin ETF continues to dominate the market. This aggressive accumulation highlights growing institutional confidence in Bitcoin and sets the stage for potential price gains in the months ahead.
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