Crypto ETFs, retail trading spike as Bitcoin nears record highs
BlackRock’s spot bitcoin exchange-traded fund (ETF), which trades under the ticker IBIT on Nasdaq, saw a record amount of cash injection after a quiet few weeks of net outflows. The healthy metrics came as bitcoin briefly traded above the $71,000 level for the first time in a month.
BlackRock’s IBIT product recorded over $290 million in inflows on Tuesday, according to preliminary data from Farside Investors. This marks the highest one-day inflow so far this month and the highest since April 5. The figure is nearly triple the previous monthly high of $93 million on May 16. IBIT’s total holdings have now swelled to over $19 billion, as indicated on its product page.
Tuesday’s figures stand out as unusually large compared to early May, where IBIT recorded low or zero inflows before May 15. The product also saw its first-ever day of outflows in April, contributing to bearish sentiment for bitcoin at the time.
On the retail front, global trading platform, Capital.com, saw trading volumes in BTC/USD jump 68% in one day as BTC breaches $71,000 on Tuesday, its highest price gain since April.
Kyle Rodda, Senior Market Analyst at Capital.com, said: “Bitcoin’s correlation with US tech stocks—as expressed by the rise in the top 100 tech companies listed on the Nasdaq—continues, with both pushing to or towards record highs as markets grow more confident in Fed rate cuts this year. With implied volatility low and sentiment reasonably bullish, Bitcoin remains a gauge of monetary policy expectations and risk appetite.”
The increased activity this week coincides with hopes of an ether (ETH) spot ETF being approved for trading in the U.S., and a positive outlook for cryptocurrencies linked to Donald Trump’s ongoing presidential campaign.
Meanwhile, Grayscale’s GBTC extended a four-day streak of no net outflows, providing a temporary respite from what has been one of the biggest losers since these products were launched in January.
Overall, ETFs took on nearly $300 million in net inflows on Tuesday. Only Bitwise’s BITB and VanEck’s HODL recorded outflows, at $4 million and $5 million, respectively.
That said, bearish forces have emerged on Wednesday, trapping aggressive buyers at critical resistance levels. Over the past 24 hours, Bitcoin failed to sustain its buying momentum and is now consolidating within a range-bound zone. Analysts believe this consolidation is temporary, with the price staying above a key area of interest, suggesting a fresh rebound or new all-time high in the near future.
