BlackRock’s $332M Bitcoin purchase boosts IBIT inflows to $329M as BTC price dips 3%, strengthening its ETF dominance.
Fidelity’s Bitcoin fund saw $5.9M in inflows, while most other U.S. Bitcoin ETFs recorded negative or zero flows.
Market speculation around the U.S. election fueled Bitcoin’s rise, even as total ETF inflows hit $21.2B amid some funds' declines.
BlackRock purchased $332.3 million in Bitcoin for iShares Bitcoin Trust (IBIT) on October 21. This major buy came after Bitcoin's price dropped by 3%, drawing attention from the crypto community. Investors took advantage of the dip, sending $329 million in inflows to the fund. BlackRock’s IBIT continues to dominate the spot Bitcoin ETF market, surpassing $23 billion in total net inflows.
https://twitter.com/BitcoinMagazine/status/1848533073660350584 Strong Inflows Amid Price Pullback
Besides BlackRock, the Fidelity Wise Origin Bitcoin Fund (FBTC) was the only other U.S. spot Bitcoin ETF to record inflows, with $5.9 million on October 21. Other funds saw zero or negative flows, highlighting BlackRock’s dominance in the market. In fact, this marks the third time in just four days that IBIT has received over $300 million in inflows, according to Farside Investors.
This strong interest in BlackRock’s Bitcoin ETF occurs even as Bitcoin struggles to break through the $70,000 resistance level, with a recent dip to $66,975. Despite this pullback, traders remain optimistic, with some predicting further downward movement toward $62,000 in the coming days.
Outlook for Bitcoin ETFs and Market Trends
Speculation about the next US election led to a recent surge in the price of Bitcoin, which jumped from $59,000 to $69,130 between October 11 and October 21. Meanwhile, all spot Bitcoin ETFs have seen $21.2 billion of inflows.
The Grayscale Bitcoin Trust, which faces over $20 billion in outflows. Meanwhile, IBIT is the largest Bitcoin ETF and ranks third in inflows for any US-listed ETF this year, after only Vanguard and BlackRock's S&P 500 index funds.
Economic Aspects Affect Extended Market Attitude
The Congressional Budget Office projects that the U.S. economy may expand enough by 2034 to balance debt issues, with GDP expected to surpass $27 trillion in 2024 and public debt reaching $26.2 trillion. The government debt is still a problem, though, as interest payments are expected to surpass $1 trillion. Nevertheless, economic expansion is expected to temporarily offset the growing debt.
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