The US spot Bitcoin ETF market is on a tear, surpassing $1 billion in inflows in just one week. One of the main drivers of this growth has been BlackRock, which has significantly increased its holdings of its IBIT Bitcoin ETF, increasing its holdings from 43,000 in June to 198,874 at the end of July. On Friday alone, $495 million in new inflows were recorded, with more than 17,000 BTC purchased in a week.
This surge in demand for Bitcoin ETFs comes as the Fed eases monetary policy and institutional investors increasingly look to Bitcoin as a hedge against inflation. As a result, Bitcoin has risen 5% in a week to $66,071.29, once again attracting the attention of investors hoping for a possible bull market in Q4 2024.
In addition, demand for Bitcoin is now significantly higher than supply. In just one day, three major funds – Ark Invest’s ARKB, Fidelity’s FBTC, and BlackRock’s IBIT – bought 6,661 BTC. Together with MicroStrategy’s additional purchase of 7,000 BTC, this creates a supply shortage in the market and supports further growth in the price of Bitcoin.
BlackRock continues to support Bitcoin as a long-term asset and a hedge against inflation by increasing its holdings in a spot Bitcoin ETF.