BlackRock IBIT ETF Breaks Inflow Record Amid Global Rate Reduction

On Wednesday, BlackRock’s iShares Bitcoin Trust, the biggest spot bitcoin exchange-traded fund in the United States based on net assets, saw net inflows of more than $872 million. This is the biggest inflow into the fund since it was launched in January, breaking the previous record high set on March 12.

The recent surge in BlackRock’s IBIT inflows is driven by several key factors, including central banks’ global shift towards reducing interest rates, which has boosted liquidity and made capital more accessible for investors,

Rachael Lucas, crypto analyst of BTCMarkets

According to data from SoSoValue, net inflows into U.S. spot bitcoin ETFs totaled $893.21 million on Wednesday, which was their second-highest amount. On Wednesday, six further spot bitcoin ETFs recorded net inflows, with Fidelity’s FBTC receiving $12.57 million. There were small net inflows of less than $8 million into Ark Invest, 21Shares’ ARKB, VanEck’s HODL, and Invesco’s BTCO.

U.S. Election Tensions Fuel $24.18B Inflows in BTC ETFs as Trading Volume Dips

The net inflows on Wednesday increased the overall inflows to $24.18 billion for the ETFs. The trading volume of the 12 funds decreased from $4.75 billion the day before to $1.97 billion yesterday.

In the lead-up to the U.S. presidential election, BTC ETFs are likely to experience increased inflows as investors look to hedge against potential economic and policy shifts. This period could bring elevated volatility as markets react to polling data, policy announcements, and debates on the regulatory landscape for digital assets.

Lucas

The date of the U.S. presidential election is November 5. On the cryptocurrency-based betting site Polymarket, former President Trump is far ahead, and on FiveThirtyEight’s national poll aggregate, current Vice President Kamala Harris is 1.4% ahead of Trump.

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