BlackRock’s iShares Bitcoin Trust Hits Record Inflows

BlackRock’s iShares Bitcoin Trust (IBIT) attracted a record net inflows worth $1.12 billion yesterday. The previous record for highest daily net inflows was on Oct. 30, with $872 million.

The unprecedented inflows into IBIT followed a day after the spot bitcoin exchange-traded fund set a new record for single-day trade volume of over $4 billion.

Rachael Lucas, a crypto analyst at BTCMarkets, stated, "This surge reflects strong investor confidence, driven by BlackRock’s reputation, Bitcoin’s recent rally, and favorable market conditions. Contributing factors include institutional trust, FOMO, and lagged capital flows after price increases."

Pro-crypto Republican candidate Donald Trump’s victory in the U.S. presidential election also boosted investor sentiment. Lucas noted that Trump’s win on Wednesday triggered rallies in both the equities and crypto markets, helping Bitcoin soar past its all-time high.

Additionally, the Federal Open Market Committee announced a 25-basis-point interest rate cut to between 4.50% and 4.75%.

Jeff Mei, COO at BTSE crypto exchange, commented, "[Trump’s victory], combined with the Fed rate cut on Thursday, spurred institutions to plunge into crypto markets. With more rate cuts coming, the prospect of pro-crypto regulations, and continued China stimulus, it makes sense that institutions are flocking to BlackRock's Bitcoin ETF, and we expect even more in the coming months."

With $1.12 billion flowing into IBIT, the total daily net inflow for the 12 U.S. spot bitcoin ETFs reached $1.38 billion, marking the highest total daily net inflows from these funds. Collectively, the funds reported $2.76 billion in trade volume on Thursday.

Fidelity’s FBTC reported $190.92 million in net inflows, while Grayscale’s mini trust added $20.38 million. Other bitcoin funds, including those from Ark & 21Shares, Bitwise, VanEck, and Valkyrie, also reported net inflows.

The 12 bitcoin funds have accumulated $25.49 billion in net inflows.

Moreover, spot ether ETFs have surged in both trade volume and net inflows following the election. The nine funds reported $79.74 million in net inflows on Thursday, with trade volume hitting $466.39 million, exceeding the usual daily volume range of $100 million to $200 million.