BlackRock Bitcoin ETF saw $224 million inflows on Monday, leading the BTC ETF surge. BTC price eyes $70,000 amid mixed ETF performance. By Kritika Mehta 6 hours ago
Highlights
- On Monday, BlackRock’s IBIT ETF led with $224.1 million in inflows, dominating the Bitcoin ETF market.
- BTC dipped below the $63,386 EMA support, yet inflows fueled optimism for a rebound towards $70,000.
- Other ETFs like Fidelity’s FBTC saw net outflows, showcasing diverse investor strategies amid market uncertainty.
On Monday, August 26, the U.S. Bitcoin spot ETFs saw substantial net inflows of $202.6 million on August 26, 2024. Moreover, BlackRock Bitcoin ETF (IBIT) contributed to the highest share in these positive flows. Hence, the expectations for BTC price reclaiming $70,000 have resurfaced.
BlackRock Bitcoin ETF Clocks $224M Inflows
The leading contributor to this surge was BlackRock’s IBIT ETF, which alone attracted $224.1 million in inflows, according to Farside UK data. This demonstrates a strong endorsement from institutional investors amid Federal Reserve rate cut optimism. Other notable inflows were observed in Franklin Templeton’s EZBC, which recorded $5.5 million, and WisdomTree’s BTCW, with $5.1 million.
However, despite the overall positive trend, the inflows were partially offset by outflows in other ETFs. Fidelity’s FBTC saw a net outflow of $8.3 million, while Bitwise’s BITB recorded a loss of $16.6 million. VanEck’s HODL also reported a minor outflow of $7.2 million. Meanwhile, Grayscale’s GBTC, Valkyrie’s BRRR and Invesco Galaxy’s BTCO saw zero flows. The mixed performance among different ETFs highlights the varied strategies and outlooks among investors.
Recently, BlackRock reported adding 4,000 shares of its IBIT Bitcoin ETF to its Strategic Global Bond Fund. Now, the fund holds 16,000 shares of IBIT. This announcement has spurred optimism around the IBIT ETF as robust inflows continue. Moreover, Hong Kong’s BTC ETF AUM has surged to $2.2 billion, further fuelling optimism.
Will BTC Hit $70,000?
The surge in inflows for BlackRock Bitcoin ETF comes at a critical juncture for BTC price. According to a recent CoinShares report, BTC investment products accounted for a whopping $543 million inflows last week with BlackRock Bitcoin ETF taking the lead. At the time writing, Bitcoin was trading at $62,901.78, slumping below the 20-day Exponential Moving Average (EMA) of $63,386.
It suggests that BTC price has breached a crucial support level, which could determine its next move. However, according to a previous analysis by Coingape, the $64,000 mark is pegged as a potential breakout point.
A rebound above this level could fuel a surge in buying interest, propelling Bitcoin toward the $70,000 target within the week. The recent Bitcoin spot ETF inflows are likely to contribute to this upward momentum. For context, increased capital inflow often correlates with rising asset prices, especially when confidence in the market is high.
However, the bullish outlook is not without risks. Should Bitcoin fail to rebound above the 20-day EMA, it could trigger a wave of selling pressure. A dip below this critical support could see Bitcoin retracing to $62,000, with further losses potentially extending to $60,000 if panic selling ensues.
Meanwhile, QCP Capital analysts slashed predictions of a new all-time for BTC despite the Fed rate cut optimism. They suggested that Bitcoin price is unlikely to breakout above $70,000 even after the Federal Reserve reduced interest rates. Nonetheless, they maintain their prediction of a fresh ATH in the fourth quarter.