BlackRock’s iShares Bitcoin Trust (IBIT) set a new record in daily traded shares of about 100 million on Thursday and a record daily inflow of $849M on Tuesday.
The dominance of BlackRock Inc (NYSE: BLK) in the fund management and exchange-traded funds (ETFs) is visible through the recently approved iShares Bitcoin Trust (NASDAQ: IBIT). To put the statement into context, BlackRock has accumulated around 223,645 Bitcoins, worth around $16.35 billion, in less than two months, whereas MicroStrategy Inc (NASDAQ: MSTR) has accrued about 205k Bitcoins in more than two years.
BlackRock’s IBIT has significantly benefited from its deep liquidity, market reputation, and a small sponsor fee of 0.25 percent. With more funds expected to proliferate into the IBIT in the near future, including from its Global Allocation Fund, BlackRock is likely to outshine Grayscale Bitcoin Trust (BTC) (NYSE: GBTC) in the near term.
Grayscale’s GBTC has recorded a total outflow of about 237,653 Bitcoins since the approval of spot Bitcoin ETFs in early January and now holds around 389,642 BTC. Grayscale has experienced huge outflows in the recent past largely due to its high sponsor fee of about 1.5 percent compared to the average that is below 0.3 percent.
According to the latest market data, BlackRock registered the highest daily cash inflows in terms of the US dollar on Tuesday, amounting to $849 million, thus surpassing the prior record of $788 million set on March 5, 2024. However, in terms of Bitcoin, BlackRock’s IBIT has not surpassed the March 5 record of 12,447, according to the latest on-chain data.
[1/4] Bitcoin ETF Flow – 14 March 2024
All data in. $132m net inflow for the day. Strong result, but much weaker than earlier in the week. Blackrock has $345m of inflow, GBTC $257m outflow, while other providers had much lower flow. pic.twitter.com/8tl2H3BTNY
— BitMEX Research (@BitMEXResearch) March 15, 2024
Meanwhile, the caily cash inflows to the IBIT dramatically decreased on Thursday as Bitcoin price flashed early signs of market correction in the coming days. Notably, BlackRock’s IBIT only registered 4,886 Bitcoins on Thursday, but canceled GBTC’s outflow of 3,638 Bitcons.
Bitcoin Price Flashes Sell Signal
After trading above 2021’s all-time high (ATH) since Monday, Bitcoin price dropped as low as $65K on Friday during the London session. With the weekly Relative Strength Index (RSI) aiming for the 50 level, it is safe to assume Bitcoin price is now preparing for the pre-halving rally.
Moreover, the fourth Bitcoin halving is about five weeks from happening, which will cut the daily supply further from 900 to 450 coins.
The impact of Bitcoin halving on the long-term price action, amid the notable demand from institutional investors, is expected to fuel the bullish sentiment in the coming quarters.
Meanwhile, Bitcoin price is likely to continue dropping as the altcoin market grinds over BTC dominance. From a technical standpoint, Bitcoin price is likely to find a solid support level around $60K before continuing with the bullish outlook.
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