Bitcoin ETFs Rebound as BlackRock Acquires 2,913 Bitcoin (BTC)

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BlackRock made headlines by purchasing 2,913 Bitcoin, worth $184.3 million. This marked their highest single-day acquisition in September. 

The news shows a renewed demand for Bitcoin, especially in the exchange-traded fund (ETFs) market. With this purchase, BlackRock solidified its position as the leading Bitcoin holder, surpassing other firms.

BlackRock’s Significant Purchase

BlackRock’s latest acquisition represents a significant shift in market dynamics. The firm now holds a total of 359,279 BTC, valued at approximately $23 billion. 

This amount far exceeds holdings by other firms like MicroStrategy, which has 107,059 BTC less than BlackRock.

This massive investment also signals a rebound in the Bitcoin ETF market. The U.S. Bitcoin spot ETFs debuted in January, sparking a wave of demand. 

Bitcoin ETFs recorded a massive single-day inflow of $1.05 billion in March and a total net asset of $62.5 billion in June. However, the market saw a decline in demand during July.

Renewed Inflows to Bitcoin ETFs

Interestingly, recent trends show that inflows into Bitcoin ETFs have picked up again. According to Farside Investors, BlackRock’s $184.3 million Bitcoin Purchase contributed to $105.8 million in single-day inflows for U.S. Bitcoin spot ETFs. 

BlackRock’s iShares Bitcoin Trust (IBIT) and the Bitwise Bitcoin ETF (BIBT) experienced positive inflows that day. BIBT saw a net inflow of $2.07 million, while other funds like the Fidelity Wise Origin Bitcoin Fund (FBTC) sold 525 BTC, worth $33.2 million. 

Also, the Ark 21Shares Bitcoin ETF (ARKB) offloaded $47.41 million in Bitcoin. Other issuers, such as Grayscale, reported zero inflows.

Positive Trends in 30-Day Net Flow

Amid these developments, an X user shared that the 30-day flow indicator for Bitcoin ETFs has turned positive. This is a welcome change after a period of negative trends, and it shows that issuers have seen an average net inflow over the past month.

#Bitcoin spot ETF demand has rebounded, with the 30-day net change in total holdings turning positive. pic.twitter.com/c0C8BaFPDq

— Ki Young Ju (@ki_young_ju) September 26, 2024

These funds have received new money for five days, totaling almost $500 million. Additionally, they have received more money in nine out of the last ten days.

“The U.S. is regaining dominance in Bitcoin holdings. Its ratio compared to other countries is rising, driven by spot ETF demand,” says Ki Young Ju.

Global Comparison of Bitcoin Holdings

Historically, the U.S. has dominated Bitcoin holdings among public firms. The recent surge in inflows has helped restore that dominance, which had dipped due to previous lackluster performance. 

The renewed interest in the market is evident in BTC’s price. On September 25, Bitcoin declined to $62,700. However, after this BlackRock purchase, BTC’s price has now been around $64,000.

Also, BTC is trading above its 50-day and 200-day SMA lines, suggesting a bullish sentiment. Looking at its chart, BTC is closer to breaking its primary resistance at $64,700.

A cross above this level will boost the bullish momentum in the market.