The BlackRock iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF) has redefined cryptocurrency investment standards. On March 5, it recorded its highest daily inflows, attracting a remarkable $788 million.
This achievement eclipsed its previous record of $612.1 million, set on February 28. Such impressive figures underscore soaring confidence among institutions and retail investors as Bitcoin climbed to new peaks.
Bitcoin Price Sees Dramatic Drop Despite BlackRock’s Record Inflows
On Tuesday, Bitcoin reached a new all-time high (ATH) of $69,200. This happened amidst a noticeable uptick in spot Bitcoin ETF investments in the United States. According to Farside Investors, the total inflows amounted to $648.3 million on the day Bitcoin achieved its ATH. This clearly indicates the growing retail and institution’s interest in Bitcoin.
During this period of heightened activity, the performance of US spot Bitcoin ETFs varied. While the Grayscale Bitcoin Trust (GBTC) and the Invesco Galaxy Bitcoin ETF experienced net outflows, IBIT led the charge in net inflows.
Contributions from the Fidelity Wise Origin Bitcoin Fund (FBTC), the Bitwise Bitcoin ETF (BITB), and others also bolstered this momentum. Consequently, this led to an ecosystem total of $8.5 billion in net inflows.
Read more: What Is a Bitcoin ETF?
| Date | IBIT | FBTC | BITB | ARKB | BTCO | EZBC | BRRR | HODL | BTCW | GBTC | Total |
|---|---|---|---|---|---|---|---|---|---|---|---|
| February 29, 2024 | 612.1 | 245.2 | 9.9 | 23.8 | 0.0 | 0.0 | 0.0 | (3.4) | 2.2 | (216.4) | 673.4 |
| February 29, 2024 | 603.9 | 44.8 | 21.7 | 9.9 | (1.5) | 5.4 | 0.0 | 7.0 | 0.0 | (598.9) | 92.3 |
| 01 Mar 2024 | 202.5 | 49.3 | 42.3 | 55.1 | 0.0 | 5.4 | 0.0 | (1.8) | 0.0 | (492.4) | (139.6) |
| March 4, 2024 | 420.1 | 404.6 | 90.9 | 38.2 | (25.7) | 7.8 | 3.7 | (5.7) | (3.2) | (368.0) | 562.7 |
| March 5, 2024 | 788.3 | 125.6 | 3.7 | 63.7 | (14.2) | 3.6 | 0.0 | 3.5 | 6.6 | (332.5) | 648.3 |
| Total | 9,167.2 | 5,345.3 | 1,273.3 | 1,734.8 | 209.0 | 134.2 | 140.3 | 122.6 | 39.6 | (9,599.1) | 8,567.2 |
While there have been constant outflows from GBTC, IBIT, and FBTC haven’t recorded a single day of outflow. They stand out, having collectively attracted $14.46 billion in total inflows.
Alongside these developments, the market faced considerable volatility. After surging past $69,000, Bitcoin’s value took a sharp downturn, dropping nearly 15% to around $59,000.
This abrupt correction triggered a significant shakeout, with $1.13 billion in trader liquidations ensuing from the price swings. Such events underscore the unpredictable crypto market, affecting many digital assets.
“This should eliminate the precedent that BTC always goes up if ETF buyers buy $500 million/day. When correction comes, selling supply can quickly exceed buying demand, although the price recovered quickly, showing that a lot of the selling supply was due to forced selling of liquidations,” crypto trader Venturefounder said.
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