BlackRock’s iShares Bitcoin Trust (IBIT) recorded an unprecedented single-day net inflow of $1.12 billion on Thursday, surpassing its previous record of $872 million set just days earlier on October 30.
This massive inflow underscores increasing institutional interest in bitcoin and signals a strong shift toward crypto investment amid favorable market conditions
The influx of capital came a day after IBIT set a new single-day trading volume record of over $4 billion, drawing in investors looking to capitalize on bitcoin’s recent price surge and BlackRock’s credibility in the ETF market. “The surge reflects strong investor confidence, driven by BlackRock’s reputation, Bitcoin’s recent rally, and favorable market conditions,” said BTCMarkets crypto analyst Rachael Lucas. Lucas highlighted that the excitement around pro-crypto policies following Donald Trump’s recent U.S. presidential victory contributed to the optimism, spurring both equity and crypto markets. Bitcoin, responding to the market rally, reached a new all-time high.
Adding to the momentum, the Federal Open Market Committee announced a 25-basis-point interest rate cut, reducing rates to a range between 4.50% and 4.75%. According to Jeff Mei, COO of crypto exchange BTSE, “Trump’s victory and the Fed rate cut spurred institutions to plunge into crypto markets. With further rate cuts expected, pro-crypto regulations on the horizon, and additional economic stimulus from China, institutional interest in BlackRock’s Bitcoin ETF will likely continue to grow.”
Thursday’s trading surge saw the 12 U.S. spot bitcoin ETFs collectively attract a record $1.38 billion in net inflows. Fidelity’s FBTC reported $190.92 million in inflows, while Grayscale’s mini trust added $20.38 million. Other funds, including those from Ark & 21Shares, Bitwise, VanEck, and Valkyrie, also experienced inflows, contributing to a total of $25.49 billion in net inflows across the sector.
Spot ether ETFs joined the trend, benefiting from the post-election rally. The nine ether-focused funds collectively saw $79.74 million in net inflows, with a notable trading volume of $466.39 million, well above their average daily volume range.
The latest market moves point to a renewed interest in cryptocurrency ETFs, suggesting that both bitcoin and ether ETFs may continue to attract significant institutional investment as the year progresses.
