BlackRock's iShares Bitcoin Trust Sees $970.9M Inflow Amid 7.2% Bitcoin Price Surge

BlackRock’s iShares Bitcoin Trust (IBIT) has experienced significant inflows, with $970.9 million pouring in recently, marking its second-largest inflow since its launch in January 2024. This surge in investment comes as Bitcoin's price has risen by 7.2% over the past week, reaching a spot price of $95,200. On April 28 alone, the iShares Bitcoin Trust attracted $591.2 million in new capital, highlighting the growing interest in cryptocurrency investments.

Since April 22, the IBIT ETF has accumulated over $4.5 billion in net inflows, a notable achievement given the broader market downturn that has led to outflows from many other crypto funds. This influx of capital into BlackRock’s ETF suggests a renewed investor confidence in Bitcoin, which has been trending higher as investors shift back to riskier assets, including both crypto and stocks. Additionally, the weakening U.S. dollar has contributed to the positive sentiment surrounding Bitcoin.

Bitcoin’s recent performance has also been compared to gold, with the cryptocurrency’s price rising in tandem with the spot price of gold, which is currently near an all-time high and trading above $3,300 per ounce. Some analysts have noted that Bitcoin is increasingly being recognized as a store of value, earning it the moniker of “digital gold.”

Despite Bitcoin’s 1% gain so far this year, BlackRock’s stock has declined by 10% year-to-date, currently trading at $917.22 per share. The discrepancy between Bitcoin’s performance and BlackRock’s stock price reflects the broader market dynamics and investor sentiment towards traditional financial assets versus cryptocurrencies.

Analysts have a consensus Strong Buy rating for BlackRock’s stock, based on nine Buy and two Hold recommendations issued in the past three months. The average price target for BlackRock’s stock is $1,035.60, implying a potential 12.91% upside from current levels. This optimistic outlook suggests that despite recent declines, analysts remain bullish on BlackRock’s long-term prospects.

Ask Aime: What's behind the surge in BlackRock's Bitcoin Trust inflows?