Investors in BlackRock’s iShares Bitcoin Trust (IBIT) seized the opportunity to “buy the dip,” pouring $329 million into the fund on October 21 after Bitcoin’s price fell by 3%. This sizable inflow came as Bitcoin struggled to hold the $70,000 resistance level, dropping to a daily low of $66,975.
Significant Inflows Amid Bitcoin Dip
The inflows to BlackRock’s IBIT marked the third time in four trading days that the fund attracted more than $300 million, according to Farside Investors data. This reinforces BlackRock’s position as the leading spot Bitcoin ETF in the U.S., with net inflows surpassing $23 billion as of October 21.
Fidelity’s Wise Origin Bitcoin Fund (FBTC) was the only other U.S. spot Bitcoin ETF to record positive inflows on the same day, albeit significantly smaller at $5.9 million. Other spot Bitcoin ETFs either saw no inflows or posted negative figures.
BlackRock ETF Among Top 2024 Performers
According to Bloomberg ETF analyst Eric Balchunas, BlackRock’s IBIT ranks third in total ETF inflows for 2024, trailing only Vanguard’s and BlackRock’s S&P 500 index funds, tickered VOO and IVV. This demonstrates the strong interest in Bitcoin exposure, particularly as the cryptocurrency experiences volatility.
Bitcoin’s price had surged from $59,000 to $69,130 over the previous 10 days, but the 3.25% drop on October 21 halted the rally. Traders like Jelle noted that this sell-off was expected and didn’t cause concern, while other analysts, like Emperor, predicted a possible further pullback to the $62,000 range.
The recent surge in Bitcoin’s price between October 11 and October 21 has been linked to speculation surrounding the upcoming U.S. election. Despite the volatility, total net inflows across all U.S. spot Bitcoin ETFs have reached $21.2 billion, while the Grayscale Bitcoin Trust (GBTC) has seen over $20 billion in outflows.
