BlackRock’s Bitcoin Exchange-Traded Fund (ETF) saw a significant inflow of $184.4 million on September 25, marking the largest daily inflow of any Bitcoin fund for the month. The world’s largest asset manager led a five-day streak of positive inflows across all U.S. spot Bitcoin ETFs, amounting to a total of $496.7 million during this period.
While BlackRock’s iShares Bitcoin Trust (IBIT) dominated with the highest daily inflow, the Bitwise Bitcoin ETF (BITB) also saw positive activity on the same day, drawing in $2.1 million. However, other funds, such as Fidelity’s Wise Bitcoin Origin Fund and Ark’s 21Shares Bitcoin ETF, experienced outflows of $33.2 million and $47.4 million, respectively, according to Farside data.
Market Conditions and Bitcoin Price Recovery
September, traditionally a bearish month for Bitcoin, saw a shift after the U.S. Federal Reserve announced a 50 basis point interest rate cut on September 18. Following this decision, Bitcoin’s price surged back above $60,000, a level last seen at the end of August.
The total cumulative spot Bitcoin ETF inflow since launching in January is $17.94 billion. Source: Farside
The rising demand for spot Bitcoin ETFs has been cited as a driving factor for the U.S. regaining its dominance in Bitcoin holdings, according to CryptoQuant’s founder, Ki Young Ju.
BlackRock Amends Custodian Rules for Bitcoin ETF
In response to investor concerns, BlackRock amended its Bitcoin ETF’s rules concerning its custodian, Coinbase. The updated rule, filed on September 23, requires that Bitcoin withdrawals from Coinbase be completed within 12 hours. Investors have increasingly called for on-chain proof of Bitcoin holdings bought on behalf of the ETF.
As the cryptocurrency market continues to evolve, BlackRock’s successful inflows indicate growing institutional interest and confidence in Bitcoin as a long-term asset.
