Despite BTC prices dropping to $94,000 yesterday, BlackRock's Bitcoin ETF absorbed over 4,000 BTC on Monday due to soaring institutional demand.
BlackRock Bitcoin ETF (IBIT) decided to ignore the volatility of the cryptocurrency market, recording a massive inflow of $358 million on Monday. Despite BTC prices dropping to $94,000, IBIT still maintained dominant inflows yesterday. After being thwarted at the $100,000 level, Bitcoin fell over 5%, dragging down altcoins and causing leveraged positions to be liquidated.
BlackRock's Bitcoin ETF continues to dominate.
According to data from Farside Investors, BlackRock's iShares Bitcoin Trust ETF (IBIT) continues to attract significant inflows. As of December 9, the fund has absorbed over 4,000 Bitcoins, worth approximately $398 million. Yesterday, IBIT's daily trading volume surged to $3 billion, indicating strong demand for this investment product from institutional investors.
In just the past seven trading days, BlackRock's Bitcoin ETF has welcomed over $3.1 billion in inflows. Thus, since the fund's inception, IBIT's total net inflows have exceeded $34.7 billion.
BlackRock's Bitcoin ETF IBIT recently achieved a historic milestone, with assets under management (AUM) surpassing $50 billion for the first time. Notably, it reached this milestone in just 228 days, more than five times faster than any other ETF in history. In comparison, the gold ETF GLD took about 5.5 years to achieve the same feat.
Currently, the total holdings of Bitcoin ETFs have surpassed the holdings of Bitcoin's creator, Satoshi Nakamoto, with the total holdings of all these ETFs exceeding 1.1 million BTC, surpassing Nakamoto's holdings.
This achievement aligns with the surge in Bitcoin prices. Over the past month, Bitcoin prices have risen by 32%, reaching an all-time high of $104,000. During the same period, the broader cryptocurrency market cap increased by over $1.4 trillion.
Bitcoin prices fell after being rejected at the $100,000 target.
After Bitcoin prices faced resistance multiple times at the $100,000 mark, BTC prices fell below $95,000 again today, triggering a strong pullback in the entire altcoin market. Cryptocurrencies like XRP and DOGE generally pulled back nearly 15%.
According to Coingape, long-term Bitcoin holders have sold off more than 827,000 BTC over the past 30 days, a figure significantly higher than the combined purchases of spot Bitcoin ETFs and MicroStrategy.
Although institutions still maintain demand for Bitcoin, more catalysts may be needed to push BTC prices consistently above $100,000. The Federal Reserve may announce another 25 basis point rate cut in a few days. However, the key still depends on the upcoming U.S. CPI data and inflation figures to be released this week.
