BlackRock’s iShares Bitcoin Trust (IBIT) has witnessed its largest inflow in the past two weeks. Here are the details:
Significant Inflow on May 21: On May 21, IBIT’s net inflows reached $530.6 million, which is its biggest single – day net inflow since it took in $531.2 million on May 5. The ETF has not had an outflow since April 9. In one day, IBIT accumulated over 10 times the amount of Bitcoin mined during the same period, scooping up 4,931 BTC while only 450 BTC were produced that day.
Surge in Trading Volume: IBIT also saw its largest volume day since January, indicating strong market interest and trading activity.
Overall Inflow Trend: The total inflow figure for all 11 spot ETFs was $607.1 million. The Fidelity Wise Origin Bitcoin Fund (FBTC) had the second – most inflows for the day at $23.5 million. Bloomberg ETF analyst Eric Balchunas described the ETF inflows as a “classic feeding frenzy” caused by Bitcoin’s recent price rally. Bitcoin reached a new all – time high above $110,000 on May 2 and continued to rally to nearly $111,897 on Coinbase by May 22.
Jeff Mei, the operations chief at the crypto exchange BTSE, said investors are “crowding into Bitcoin ETFs”, which saw $3.6 billion in net inflows in May. He believes this trend will continue as long as companies raise more capital in the public markets, and it could accelerate if the Fed cuts interest rates in the coming months. Jupiter Zheng, a partner at Hashkey Capital, anticipates more volatility once Bitcoin breaks above $110,000, as it is “entering uncharted price discovery territory”. Unstable geopolitical and macroeconomic factors are also leading investors to consider the long – term value of Bitcoin.
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