BlackRock's Bitcoin ETF witnessed a surge in inflows, accumulating $300 million, marking a reversal from previous months characterized by low investor interest.

BlackRock’s spot Bitcoin exchange-traded fund (ETF) has garnered significant attention, accounting for 95% of the total inflow into United States spot Bitcoin ETFs on Tuesday. The combined inflows for these ETFs surpassed $300 million, offering a notable boost to the market.Preliminary data from Farside Investors reveals that BlackRock’s iShares Bitcoin Trust (IBIT) witnessed a substantial inflow of $290 million on May 21. When considering all eleven ETF issuers combined, the net inflow amounted to $305.7 million. This surge stands in stark contrast to the previous six weeks, which saw minimal or no inflows.The recent influx of funds into BlackRock’s ETF represents the highest level since April 5, surpassing the cumulative inflows witnessed over the past 21 trading days. During the past four trading days, spot Bitcoin ETFs have experienced over $1 billion in inflows amidst the ongoing volatility in the Bitcoin market.Since its inception, BlackRock’s IBIT has attracted $16 billion in inflows, as reported by Farside Investors. However, the official website for the product lists assets under management (AUM) at $19 billion. This positioning puts IBIT close to industry leader Grayscale, whose GBTC spot ETF boasts $20 billion in AUM.Grayscale’s GBTC, however, recorded zero inflows on May 21, extending its streak of five consecutive trading days without outflows. The fund has witnessed inflows of $72.5 billion in the past five days, reversing the trend of consistent outflows that spanned four months.The significant inflow figure on Tuesday was accompanied by some outflows. The VanEck Bitcoin Trust ETF (HODL) witnessed an outflow of $5.9 million, while the Bitwise Bitcoin ETF (BITB) saw an outflow of $4.2 million. The Fidelity Wise Origin Bitcoin Fund (FBTC) experienced a minor inflow of $25.8 million, while other ETFs remained largely unchanged.The surge in interest towards Bitcoin ETFs is fueled by the recent rise in Bitcoin prices. Over the past week, BTC has surged by 12%, reaching a six-week high of $71,600 on May 21. Despite this, the price dipped below the $70,000 level during early trading on May 22.Bitcoin has achieved new all-time highs against local currencies in several countries across Asia and South America. Markus Thielen, head of research at 10x Research, previously predicted that a breakthrough above $67,500 could potentially lead to even higher all-time highs. At the time of writing, BTC is trading at $69,444, just $3,000 away from its new all-time high in U.S. dollars.Analysts remain optimistic about Bitcoin’s future. Leading trading firm QCP Capital expressed confidence in the asset’s price momentum, forecasting a potential return to the highs of $74,000. This sentiment is supported by substantial buyers acquiring 100,000 to 120,000 BTC Calls for December 2024.