The spot Bitcoin 
$98,342 ETF market in the United States is expanding quickly in response to the Federal Reserve’s announcements of interest rate cuts. As institutions compete for Bitcoin shares, a staggering $495 million flowed into ETFs in just one day, pushing the weekly total past $1 billion. BlackRock continues to increase its stake in its own ETF, IBIT.
Demand for Spot Bitcoin ETFs
In the wake of the Fed’s interest rate cuts, demand for spot Bitcoin ETFs is surging daily, marked by high trading volumes. In this intense demand environment, regulated ETF products purchased over 17,009 BTC this week alone. This indicates strong institutional participation in BTC ETFs.
ARK Invest’s ARKB topped the flow charts again on Friday with $203 million, marking its second consecutive day in the lead. Fidelity’s FBTC followed in second place with $123 million, while BlackRock’s IBIT secured third with $111.7 million. Together, these three players acquired a total of 6,661 Bitcoin from the market on Friday.
High Demand Over Bitcoin Production
While daily Bitcoin production stands at 450, the ETF demand is significantly higher. In addition to the 17,000 Bitcoin purchased by exchange-traded funds, MicroStrategy alone acquired 7,000 Bitcoin this week.
BlackRock Increases IBIT Holdings
BlackRock, the world’s largest asset manager, has recently entered a buying frenzy for Bitcoin, providing substantial support for the asset class. The firm views Bitcoin as a long-term asset and a hedge against rising inflation pressures.
According to the latest SEC filings, BlackRock has increased its holdings in the spot Bitcoin ETF (IBIT) for its global allocation fund. The firm is steadily raising Bitcoin assets for its internal funds. The portfolio filing for the Global Allocation Fund on Friday reported that as of July 31, BlackRock owned 198,874 IBIT shares, a significant increase from the 43,000 shares it held in June.
Since its launch, BlackRock’s BTC ETF has attracted over $21.3 billion in flows within nine months, continuing to stand out in the market. In the past week, Bitcoin prices have shown strong movements, rising by 5%. As of the last press time, BTC was trading at $66,071.29, representing a 1.16% increase, with a market cap of $1.305 trillion.
This uptick is happening as market participants prepare for an anticipated bull market in the fourth quarter of 2024.
