BlackRock's iShares Bitcoin Trust (IBIT) has experienced a significant surge in inflows over the past two weeks, as traders increasingly allocate to US spot Bitcoin exchange-traded funds (ETFs) to capitalize on the soaring cryptocurrency market. According to data from Farside Investors, IBIT recorded its largest single-day net inflow on May 21, amounting to $530.6 million. This marked a substantial increase from its previous high of $531.2 million on May 5. Notably, IBIT has not seen any outflows since April 9.

In a remarkable demonstration of investor interest, IBIT accumulated over 10 times the amount of Bitcoin (BTC) mined on a single day, acquiring 4,931 BTC compared to the mere 450 BTC produced that day. Additionally, IBIT witnessed its highest trading volume day since January, as reported by the ETF tracking X account Trader T. ETF Store president Nate Geraci commented on the robust trading volume, predicting a further increase in inflows based on the current market activity.

The total inflow for all 11 spot ETFs on the same day reached $607.1 million, with the Fidelity Wise Origin Bitcoin Fund (FBTC) following IBIT with $23.5 million in inflows. Bloomberg ETF analyst Eric Balchunas characterized the inflows as a "classic feeding frenzy" triggered by Bitcoin's recent price surge, which peaked at nearly $112,000 in trading on May 22.

Balchunas highlighted that ETF trading volumes had not reached such levels since January, coinciding with Bitcoin's previous all-time high. He anticipated a doubling in average inflows for most Bitcoin ETFs due to the heightened market activity. The spike in ETF inflows and trading volume occurred as Bitcoin reached a new peak above $110,000 and continued its rally, reaching close to $111,897 on Coinbase.

Jeff Mei, operations chief at crypto exchange BTSE, noted a substantial influx of investors into Bitcoin ETFs, with $3.6 billion in net inflows recorded in May. He suggested that this trend could persist as companies seek additional capital from public markets, potentially accelerating if the Federal Reserve decides to reduce interest rates in the coming months.

Jupiter Zheng, partner at HashKey Capital, expected increased volatility once Bitcoin surpasses $110,000, emphasizing the uncharted territory of price discovery. Against a backdrop of geopolitical and macroeconomic uncertainties, investors are increasingly evaluating Bitcoin's long

Source: https://cointelegraph.com/news/blackrock-bitcoin-etf-biggest-inflow-two-weeks-as-bitcoin-nears-11200?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound