Bitcoin ETF enters the Top 3 among the largest on the market
Bitcoin (BTC) ETF inflows have accelerated since last week and refuse to stop anytime soon. Proof of this was the new record broken by BlackRock's IBIT, which became one of the three largest ETFs on the market.
On Monday (21), BlackRock's iShares BTC ETF (IBIT) created a milestone and reached US$26 billion in assets under management. This places IBIT among the top three ETFs launched in 2024, taking capital flow into account.
IBIT Bitcoin ETF Reaches New Milestone
Last week, the market saw more than $2 billion in flows, suggesting huge institutional demand. This number continued to rise and reached US$294 million on Monday, with BlackRock's IBIT stealing the show alone.
In this sense, IBIT recorded US$329 million in flows, while the rest of the other ETFs had zero flows or net outflows of money. In the last six days alone, IBIT recorded inflows totaling US$1.5 billion.
Bloomberg ETF analyst Eric Balchunas said this was the best week for BlackRock's ETF, whose cumulative value surpassed the Vanguard Total Stock Market (VIT). As a result, IBIT occupied a place among the top three ETFs by inflows in 2024.
Furthermore, IBIT's assets under management have now exceeded US$26 billion, representing 2% of the value of the market's leading ETFs.
However, these strong ETF inflows did not have much of an impact on BTC price as it failed to surpass the crucial $69,000 resistance. On the contrary, BTC continues to face selling pressure and fell 2% this Tuesday. However, daily trading volume increased by 60% and reached US$37 billion.
“ETF inflows may have a moderate impact for a few days and then the market reverses lower as aggression from spot market buyers fades,” Bitfinex said in a report.
Donald Trump's victory at stake?
For many analysts, BTC's performance is closely linked to the United States election, which will take place on November 5th. As Donald Trump's chances of victory increase, market analysts say inflows into Bitcoin ETFs are betting on the Republican's victory.
According to data from Polymarket, Trump's chances of winning have improved. After going into disadvantage, the former president now has a 63.5% chance of winning the election. Kamala Harris, current vice president and candidate for the Democratic party, has a 36.3% chance of winning.
Ryan Lee, lead analyst at Bitget Research, noted that institutional interest is evident, with six consecutive days of inflows signaling strong momentum.
“The main bullish factors are the increasing chances of Trump winning the election and a technical recovery in the price of Bitcoin. Trump is a known supporter of Bitcoin, and his increasing chances of victory are seen as a positive sign by the market,” said Lee.
Furthermore, the recent approval of Bitcoin ETF options by the US SEC could further increase liquidity in ETFs.
“With the SEC’s approval of the ETF options, we believe this will provide the ETF with the liquidity it needs to attract sustainable inflows,” QCP Capital noted.