BlackRock's Bitcoin ETF Sees 19-Day Inflow Streak, $1.03 Billion in Week

BlackRock’s spot Bitcoin ETF (IBIT) concluded the trading week with another day of inflows, attracting $356.2 million on May 9. This marks the 19th consecutive day of inflows, the longest streak for the fund this year. The inflow streak began on April 14 and has coincided with a volatile Bitcoin market, with prices fluctuating between $83,152 and $103,000 during this period. However, market sentiment has improved as Bitcoin reclaimed and held above the $90,000 price mark on April 23 and surpassed the $100,000 mark on May 8 for the first time since February 1.

Over the past trading week, IBIT recorded $1.03 billion in inflows. Prior to the current 19-day streak, the longest inflow period for IBIT in 2025 was a nine-day stretch from January 15 to January 28, surrounding the inauguration of US President Donald Trump. Since the launch of spot Bitcoin ETFs in January 2024, approximately $41.13 billion has flowed into these funds. The longest inflow streak for IBIT since its launch was 104 days, from January 2024 through April 23, 2024. This period coincided with Bitcoin reaching a new all-time high of $73,679 in March before retreating to the mid-$60,000 range.

On April 23, BlackRock’s spot Bitcoin ETF was recognized as the “Best New ETF” at the annual ETF awards. This accolade underscores the growing institutional interest in Bitcoin and the increasing acceptance of cryptocurrencies as a legitimate investment class. The sustained inflows into IBIT reflect a broader trend of institutional adoption, with investors viewing Bitcoin as a viable asset class amidst a backdrop of expanding global liquidity.

The continuous inflow into BlackRock's Bitcoin ETF indicates a shift in investor sentiment towards digital assets. This trend is particularly significant given the broader economic context, where global liquidity continues to expand. According to analysts, global liquidity, driven by increasing debt levels in many countries, plays a crucial role in asset price movements. Bitcoin, in particular, has shown a strong correlation with global liquidity, with some analysts suggesting that liquidity explains up to 90% of its price movements.

The relationship between Bitcoin and global liquidity is well-documented. Raoul Pal, the founder of Global Macro Investor, has highlighted the strong correlation between Bitcoin and global M2 liquidity. Pal's analysis indicates that expanding liquidity backs up to 90% of Bitcoin’s price action. This correlation is supported by historical data, which shows an almost uncanny alignment between global M2 and Bitcoin’s price movements.

The drivers of global liquidity are multifaceted, including the actions of central banks such as the US Federal Reserve and the People’s Bank of China, as well as broader economic factors like oil prices and bond market volatility. Michael Howell, author of “Capital Wars,” identifies these factors as key influencers of global liquidity. Howell projects that the current cycle of global liquidity, which moves in roughly five-year cycles, is on the way to its local peak by mid-2026. This projection suggests that while there may be short-term fluctuations, the overall trend of increasing liquidity is likely to continue through 2025.

The sustained inflows into BlackRock's Bitcoin ETF are a testament to the growing acceptance of cryptocurrencies as a legitimate investment option. As global liquidity continues to expand, driven by central bank policies and economic conditions, Bitcoin is poised to benefit from this trend. The convergence of the liquidity cycle and Bitcoin’s halving cycle in late 2025 and early 2026, respectively, could set the stage for a major price move, further solidifying Bitcoin's position in the investment landscape.