BlackRock’s Bitcoin ETF Shatters Record With $788M Inflow

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BlackRock’s Bitcoin ETF, known as IBIT, has experienced an unprecedented flow of capital that marks a significant moment in its history. On the 5th of March, the ETF amassed an extraordinary $788 million in a single day, shattering its own prior record of $612 million. This considerable influx arrived as Bitcoin soared to a new zenith, setting an all-time high (ATH) of $69,300, which eclipsed its last peak from the year prior.

In a dramatic twist, Bitcoin’s ascent was met with a sharp correction that brought its value down below the $60,000 mark. Rather than deterring investors, this price drop appeared to present a lucrative buying opportunity for ETF enthusiasts keen on adding Bitcoin to their portfolios at a more agreeable valuation.

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This market sentiment seemed to have worked in Bitcoin’s favor as it swiftly embarked on a recovery journey, managing to climb back up to the $65,200 threshold. Such resilience has set the stage for the cryptocurrency to potentially amass further gains and solidify its standing above its all-time high.

On the bustling day of March 5, the landscape of Bitcoin ETFs witnessed an extraordinary event with a collective trading volume reaching an astounding $10 billion – a feat beyond any previous records. Bloomberg’s ETF specialist, Eric Balchunas, weighed in on this activity, noting how volatility commonly trails hand-in-hand with increased ETF volumes. Amidst this throng, several Bitcoin ETFs, including those from reputable firms like Blackrock’s IBIT, Fidelity’s FBTC, Bitwise’s BITB, and Arkham’s ARKB, recorded peak trading volumes.

A contrast, however, has been noted in the performance of the Grayscale Bitcoin Trust (GBTC), which has been beset by continued outflows since the dawn of Bitcoin ETFs on January 11. Despite nearly $10 billion exiting, GBTC’s total assets under management have surprisingly remained intact, a phenomenon attributed to the so-called ‘bull market subsidy’ that sees the persistent holding of assets driving revenue for the trust, even in the face of outflows.

As Bitcoin grapples with resistance at its ATH of $69,000, the market watches intently for signs of its next move. The Golden Ratio Multiplier, a renowned technical indicator, has chimed in by aligning its cycle top band with Bitcoin’s recent peak. Yet with this being the solitary cycle top indicator to have signaled thus far, some market commentators, like Crypto Con, speculate that the anticipated significant market retreat is still at bay.

Crypto Con postulates that Bitcoin is simply pausing in the midst of its steep climb. The conviction is that surpassing the ATH might herald a new chapter for Bitcoin, one that could be marked by intensified market vigor and ascending price trajectories. With digital charts portraying Bitcoin’s resurgence at the $65,000 level, anticipation lingers as to what’s next for this pioneering cryptocurrency.