Key Insights:
- BlackRock Bitcoin ETF (IBIT) saw daily trading volumes reaching $4.2 billion amid rising institutional interest.
- BlackRock’s IBIT entered the top 20 U.S. ETFs with $90.7 billion in assets, surpassing XLK. It also overtook Coinbase’s Deribit as the largest venue for BTC options with $38 billion in open interest.
- Expert projections suggest that if Bitcoin ETF inflows accelerate, BTC could surpass $135,000 by November.
Inflows into spot Bitcoin ETFs have bounced back strongly this week, amid the BTC price recovery to $120,000. BlackRock iShares Bitcoin Trust (IBIT) has been leading most of the inflows, now reaching closer to $62 billion since inception. As a result, the IBIT share price has staged a strong rally.
The share price gained 11% over the past week, and hit an all-time high of $68.77 on October 2.
BlackRock Bitcoin ETF (IBIT) Dominates with $466 Million Inflows
On October 2, US Bitcoin ETFs saw inflows surge past $600 million for the second consecutive day. This shows that institutional flows are back as BTC price stages a strong bounce to $120,000 levels.
BlackRock’s IBIT has been dominating most of the inflows at $466 million yesterday. It added a total of 3,859 BTC to its holdings.
Trading activity remained robust, with daily volume reaching $4.2 billion. That underscored continued institutional demand for spot Bitcoin exposure. Following yesterday’s purchase, IBIT now holds a total of 777,000 Bitcoins in its kitty.
As per the official iShares website, the total assets under management (AUM) for IBIT are now reaching closer to $100 billion. This comes with rising Bitcoin accumulation as well as the BTC price rally.
BlackRock’s Bitcoin ETF Joins Top 20 List
BlackRock’s iShares Bitcoin Trust (IBIT) has reached a new milestone. It entered the top 20 U.S. exchange-traded funds with $90.7 billion in assets under management, surpassing the Technology Select Sector SPDR Fund (XLK).
Bloomberg ETF analyst Eric Balchunas noted the achievement highlights rising institutional demand for Bitcoin investment products.
In a further development, IBIT has also overtaken Coinbase’s Deribit platform as the largest venue for Bitcoin options, with $38 billion in open interest. Balchunas suggested that the rapid growth of ETFs poses a challenge to traditional crypto trading platforms.
As per Farside Investors’ data, the overall inflows across US Bitcoin ETF issuers have surged past $59 billion since inception. Fidelity’s FETH has also seen strong inflows crossing over $12.5 billion since inception.
Furthermore, BlackRock’s IBIT share price has seen a strong upside. It gained an additional 11% over the past week, reaching an all-time high of $68.77.
On the weekly chart, the IBIT share is showing a bull-flag pattern. Market experts brace for a strong rally in the share for the month of October.
What Happens in Q4 with the BTC Price Rally?
Market analytics platform Ecoinometrics highlighted that the fourth quarter has historically been a strong period for Bitcoin during bull markets. Last year, the largest ETF inflows of the year occurred in Q4, driving Bitcoin from $60,000 to above $100,000.
According to the firm’s model, if ETF inflows accelerate again this quarter. Bitcoin could climb past $135,000 by November.
BTC price has shown major strength, bouncing off from the lows of $109K last week. Bulls are now targeting to sustain above $120K, which could set the stage for a rally to new all-time highs. The recent rally comes despite the US government announcing a shutdown this week.
Analysts believe that this could further pave the way for another 25 bps Fed rate cut announcement in October. This could provide an additional liquidity boost to risk-on assets, such as crypto, thereby driving prices higher.
Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draws his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fiction novels and sometimes explores his culinary skills.
 leads the overall inflows across the sector, taking total holdings to 777,000, amid the BTC price rally.){kind=link}