BlackRock's iShares Bitcoin Trust Buys $970M in Bitcoin, Drives 51% Market Share
1min read BlackRock’s iShares Bitcoin Trust (IBIT) ETF made a significant purchase of nearly $1 billion worth of Bitcoin on April 28, marking its second-largest day of inflows on record. This substantial investment has provided structural support for Bitcoin’s price appreciation, according to market analysts. The purchase of $970 million in Bitcoin by IBIT ETF brought the total net inflows to US spot BTC ETFs to just above $590 million. Notably, all other ETFs experienced net negative outflows or remained flat, with ARK Invest’s ARKB ETF recording the highest outflows of $226 million.
IBIT’s investment has positioned it as the largest spot BTC ETF, with over $54 billion in assets under management, accounting for 51% of the total spot BTC ETF market share. This latest inflow has also made IBIT the world’s 33rd-largest ETF among both crypto and traditional finance-based ETFs. The significant inflows into IBIT and other spot Bitcoin ETFs have been crucial for Bitcoin’s recovery, with the cryptocurrency surpassing $94,000. Retail investor interest has continued to lag, but the institutional buying has provided the necessary support for Bitcoin’s price movement.
The cumulative net inflows for US spot Bitcoin ETFs exceeded $3 billion last week, marking their second-highest week of investments since launch. This influx of capital has provided structural support for Bitcoin’s rally, potentially fueling further upside. Historically, Bitcoin investments through ETFs have been a significant driver of the cryptocurrency’s upside momentum. For instance, Bitcoin ETFs accounted for an estimated 75% of new investment into Bitcoin when it recaptured the $50,000 mark in February 2024, just a month after the debut of the US spot Bitcoin ETFs.
Analysts have noted that the recent ETF inflows and corporate buying have been instrumental in Bitcoin’s recovery. The strong weekly gain in Bitcoin’s price, the strongest since Trump’s election victory, suggests that another significant move could be on the horizon. The structural support provided by ETF inflows is expected to continue driving Bitcoin’s price appreciation, as institutional investors remain bullish on the cryptocurrency.
