BlackRock's Spot Bitcoin ETF Tops World's Largest Gold Fund in Inflows This Year

BlackRock's Spot Bitcoin ETF Tops World's Largest Gold Fund in Inflows This Year

In a significant development, BlackRock's Bitcoin ETF has surpassed the world's largest gold fund in terms of inflows this year. According to data from Lookonchain, on May 5, 2025, the combined net inflow for 10 Bitcoin ETFs reached 7,887 BTC ($742.4 million), with BlackRock's iShares ETF accounting for 6,954 BTC ($654.59 million) [2]. This substantial inflow signals sustained institutional demand for Bitcoin and underscores the growing interest in digital assets.

The Bitcoin ETF inflows have been a consistent trend, with BlackRock's iShares Bitcoin Trust (IBIT) recording inflows for 15 consecutive days. On Monday, the asset manager scooped an additional 5,613 BTC worth $530 million, with its total inflows since inception crossing $44 billion [1]. This surge in inflows is a testament to the increasing institutional appetite for Bitcoin exposure amidst evolving market conditions.

The inflows into Bitcoin ETFs have also been reflected in the Bitcoin price. While the price remains steady around $94,500, analysts suggest a potential surge to $100K [1]. The Bitcoin MVRV ratio indicates a market reset, setting the stage for further recovery. The froth has been removed, and the reset is real, as Bitcoin's MVRV touched its long-term mean at 1.74 [1].

The trading implications of these ETF inflows are substantial. The market saw a slight uptick in trading activity around 11:00 AM UTC on major exchanges like Binance and Coinbase, with Bitcoin's spot price showing a 1.2% increase within an hour of the ETF inflow news breaking [2]. The trading volume for BTC/USDT on Binance surged by 15% compared to the previous 24-hour average, reaching approximately 120,000 BTC traded [2]. Similarly, ETH/USDT volume increased by 10%, with around 250,000 ETH exchanged in the same timeframe [2]. These spikes suggest that retail traders are reacting to institutional inflows, creating a feedback loop of buying pressure.

On-chain metrics further support this bullish outlook. Bitcoin's active addresses rose by 8% to 1.1 million on May 5, 2025, at 1:00 PM UTC, indicating heightened network activity [2]. For Ethereum, the total value locked in decentralized finance (DeFi) protocols increased by $300 million to $62.5 billion within 12 hours of the ETF inflow report [2]. These metrics provide actionable insights for traders focusing on cryptocurrency market analysis.

The data underscores a pivotal moment for crypto investors looking to capitalize on institutional momentum. The inflows into major ETFs, especially from BlackRock, signal growing confidence from institutional players in the long-term value of Bitcoin and Ethereum. For traders, this presents potential opportunities to ride the momentum in key trading pairs such as BTC/USDT and ETH/BTC.

References:
[1] https://coingape.com/blackrock-bitcoin-etf-inflows-shoot-to-5613-btc-100k-recovery-soon/
[2] https://blockchain.news/flashnews/may-5-bitcoin-and-ethereum-etf-net-inflows-blackrock-ishares-dominates-with-654-59m-btc-and-19-7m-eth-inflows