BlackRock Bitcoin ETF sees first inflow in weeks: Investors favor BTC again?

• Bitcoin ETFs saw renewed inflows, with BlackRock’s IBIT recording $15.8 million on the 16th of September.
• Major ETF inflows positively influenced Bitcoin’s price, pushing it above $60K amidst rising confidence.

The Bitcoin [BTC] ETF market recently shifted from a consistent streak of outflows to days of renewed inflows, a trend that began on the 12th of September.

Blackrock’s IBIT makes headlines

BlackRock’s iShares Bitcoin Trust [IBIT] drew significant attention, having experienced zero activity for weeks.

On the 16th of September, IBIT recorded an inflow of $15.8 million. This marked its first daily net inflow in three weeks.

According to Farside Investors, this contributed to a combined net inflow of $12.8 million for U.S. spot BTC ETFs.

However, this surge was short-lived, as IBIT returned to zero inflows the next day.

Other Bitcoin ETFs analyzed

On the 17th of September, several major Bitcoin ETFs experienced notable inflows, signaling renewed investor interest.

Fidelity’s FBTC led the pack with an impressive $56.6 million inflows, followed by Bitwise’s BITB at $45.4 million and Ark’s ARKB at $42.2 million.

VanEck’s HODL saw more modest inflows of $20.5 million, while Invesco’s BTCO recorded $10.2 million, Franklin’s EZBC recorded $8.7, and WTree’s BTCW brought in $3.2 million.

Meanwhile, Grayscale’s GBTC remained stagnant, recording zero flows during the same period.

Source: Jesse Trading/X

Community reaction

Remarking on the same, X user Puppeteer said, 

“That’s a significant increase in Bitcoin holdings by U.S. ETFs, signaling strong institutional confidence.”

Adding to the fray was trader and investor Mark The Ape, who said, 

“BlackRock and Grayscale might be holding back for now, but the demand is there, setting up for what could be a major catalyst in the coming months.” 

This underscores the community’s continued confidence in BTC ETFs, even in the face of zero flows from prominent players like BlackRock and Grayscale.

Reflecting on the past, BlackRock’s entry into the emerging crypto ETF space generated significant excitement among investors.

With $9 trillion in assets under management, BlackRock’s entry into the market saw a boost in institutional trust and a polished perspective, driving forward the adoption of cryptocurrency ETFs. 

Impact on Bitcoin’s price

That being said, while Bitcoin ETFs experienced notable inflows, BTC itself faced challenges breaking the $60K threshold on the 17th of September.

However, with the latest surge of 2.96%, BTC was trading at $60,432 at press time, per CoinMarketCap.

This upward momentum underscores the positive influence that ETF inflows have had on Bitcoin’s price trajectory, reflecting a potential bullish trend.