Bitcoin News Today: BlackRock Bitcoin Ether ETFs Draw $1B Inflows Amid BTC 5% Drop

BlackRock’s Bitcoin and Ether ETFs recorded over $1 billion in net inflows on Thursday as the price of Bitcoin fell by 5% or more, reflecting institutional demand for the dip amid a broader market correction [1]. The purchase was driven by BlackRock’s iShares Bitcoin Trust (IBIT) and its Ether equivalent, which each added more than $500 million in assets during the session [1]. The buying pressure came as Bitcoin’s price dropped to near $117,200, nearly filling the gap in the CME Group’s Bitcoin futures market that had opened during the decline [1].

The move was seen as a contrarian strategy by institutional investors, who appear to view the dip as an opportunity rather than a sell-off [1]. Eric Balchunas, ETF analyst at Bloomberg, noted that the combined volume of Bitcoin and Ether ETF trades on the day reached $11.5 billion, a figure comparable to the daily trading volume of Apple stock [1]. This activity highlights the growing role of spot crypto ETFs in absorbing market volatility and attracting capital during periods of uncertainty [1].

Bitcoin’s price action also drew attention from traders who observed that the asset had largely retraced its recent CME gap [1]. Ted Pillows, a crypto investor and entrepreneur, noted that the price had already filled about 75% of the gap, signaling a potential reversal in momentum [1]. Traders like Jelle pointed out that Bitcoin had stabilized above the 50-period exponential moving average on the four-hour chart, with $120,000 now acting as a critical support level [1]. The stabilization of price after hitting key levels suggests that market participants are beginning to process the recent correction and prepare for the next phase of price discovery [1].

The inflows into BlackRock’s ETFs occurred against a backdrop of macroeconomic developments, including the release of the US Producer Price Index (PPI) and comments from Treasury Secretary Scott Bessent on a potential strategic Bitcoin reserve [1]. These factors contributed to the initial sell-off before institutional buyers stepped in [1]. The continued demand for Bitcoin and Ether exposure through ETFs reflects a maturing investor base that is increasingly viewing crypto as part of a diversified portfolio [1].

Ethereum also saw strong inflows, reinforcing the notion that both leading cryptocurrencies are being treated as strategic assets in the eyes of institutional investors [1]. The spot Ether ETFs alone have seen record inflows, with over $3 billion added in August [5]. This trend supports the broader narrative that institutional adoption is a key factor in the crypto market’s evolution [2]. Despite these positive signs, some analysts caution that expectations for immediate price surges, particularly tied to a Fed rate cut, may be overstated [6].

The sustained buying pressure from ETFs is not only a signal of confidence but also a reflection of the broader market structure [1]. As Bitcoin continues to consolidate near key support levels and fill its CME gap, the role of large institutional players like BlackRock becomes more pronounced in shaping the direction of the market [1]. With the market still in the early stages of digesting recent volatility, the coming days will be critical in determining whether the recent inflows into ETFs translate into a sustained upward trend.

Source:

[1] title1: BlackRock Bitcoin, Ether ETFs buy $1B as BTC price ...

url1: https://cointelegraph.com/news/blackrock-bitcoin-ether-etfs-buy-1b-btc-price-mostly-fills-cme-gap

[2] title2: BTCUSD - BlackRock Bitcoin, Ether ETFs buy $1B as BTC ...

url2: https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96649184/blackrock-bitcoin-ether-etfs-buy-1b-as-btc-price

[5] title5: US spot Ether ETFs see 2nd-biggest inflows on record as ETH nears new high

url5: https://cointelegraph.com/news/us-spot-ether-etfs-see-2nd-biggest-inflows-on-record-as-eth-nears-new-high

[6] title6: Ether investors betting too much on a Fed rate cut, analysts worry

url6: https://cointelegraph.com/news/ether-investors-betting-too-much-on-a-fed-rate-cut-analysts-worry