BlackRock‘s iShares Bitcoin Trust (IBIT) witnessed an astonishing inflow of $520 million in a single day on Tuesday, emerging as the second-largest daily influx among US exchange-traded funds. This surge highlights growing investor interest in cryptocurrencies, particularly as Bitcoin approaches its previous all-time high of $69,000.

Retail Traders Propel Rally Amidst ETF Surge

Analysts attribute the rally to retail traders, indicating a rising appetite for Bitcoin ETFs. With nearly a dozen spot Bitcoin ETFs introduced in January, investors now have an accessible avenue for exposure to the digital asset without direct ownership. BlackRock’s ETF, in particular, has seen inflows for 32 consecutive days, reflecting sustained investor confidence.

Anticipation Builds Around Bitcoin’s Halving Event

Further fueling the rally is anticipation for Bitcoin’s upcoming halving event, scheduled for spring. This event, reducing Bitcoin rewards for miners by half, underscores the asset’s scarcity narrative. Historical trends suggest that previous halving events have led to new all-time highs within a year, adding to the bullish sentiment surrounding Bitcoin.

As the crypto market continues to evolve, the influx of institutional and retail interest in Bitcoin ETFs signals a broader acceptance of digital assets within traditional finance.