BlackRock’s iShares Bitcoin Trust (IBIT) bought $970 million in Bitcoin, achieving the second-largest inflow of its history. This influx has provided significant support for Bitcoin’s price, which now stands above $94,000. In contrast to IBIT, other ETFs have struggled with negative outflows, paving the way for institutional interest to dominate the current market landscape.
On April 28, BlackRock’s iShares Bitcoin Trust (IBIT) made a significant move by purchasing nearly $1 billion worth of Bitcoin, specifically $970 million, according to market analysts. This investment has been characterised as a crucial support factor for Bitcoin’s rising price, with net inflows to US spot BTC ETFs surpassing $590 million. It marks IBIT’s second-largest inflow day after obtaining $1.12 billion on November 7, 2024, as reported by Sosovalue.
The recent inflow pushed BlackRock’s IBIT to the forefront, solidifying its position as the largest spot BTC ETF with over $54 billion in assets. This accounts for around 51% of the entire spot BTC ETF market share, as per Dune data. In contrast, other ETFs struggled, with ARK Invest’s ARKB seeing outflows of $226 million, marking a stark diversion in the ETF landscape.
Nate Geraci, president of the ETF Store advisory firm, pointed out in an X post on April 29 that it is noteworthy how demand for Bitcoin has shifted dramatically, given that just a short while ago there were claims of “no demand.” The week’s movements have made IBIT the 33rd largest ETF across both crypto and traditional finance ETFs, demonstrating the growing institutional interest.
Ryan Lee, chief analyst at Bitget Research, noted that this influx of ETFs and corporate buying has played a pivotal role in Bitcoin’s price recovery, which has now crossed above $94,000. Interestingly, retail investor interest has not kept pace with this institutional support. Analysts highlighted that last week alone saw cumulative net inflows for US spot Bitcoin ETFs exceeding $3 billion, representing the second-best week of investments since their inception.
Iliya Kalchev, an analyst from Nexo, remarked on Bitcoin’s recent price trajectory being the strongest weekly gain since Donald Trump’s election. However, there are certain signs that indicate further market movements might be on the horizon. The inflows into spot Bitcoin products, which surged to $3 billion last week—the highest since November—have been identified as providing essential structural support that could lead to additional price advancements.
