BlackRock’s Bitcoin Coup: The 13-Day Power Play that Turned Heads With 11,500 BTC
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BlackRock’s Bitcoin Coup: The 13-Day Power Play that Turned Heads With 11,500 BTC

  • BlackRock, in a bold move, has acquired a substantial 11,500 Bitcoin during a market dip, equivalent to about 13 days’ worth of Bitcoin production.
  • This strategic move aligns with the launch of BlackRock’s spot Bitcoin ETF and signals growing institutional confidence in Bitcoin as an asset class, potentially triggering a supply crunch in the market.

Blackrock Acquiring 11,500 BTC Amid Market Dip as ETFs Take Center Stage

In a bold move, BlackRock, the global asset management giant, has reportedly secured a staggering 11,500 Bitcoin during the recent market dip, marking a substantial acquisition equivalent to about 13 days’ worth of Bitcoin production. The purchase follows the launch of BlackRock’s spot Bitcoin ETF, reflecting the company’s growing confidence in Bitcoin as a viable asset class.

Bitcoin ETFs Trigger Supply Crunch

Data reveals that BlackRock’s iShares Bitcoin Trust (IBIT) Spot ETF led the charge, attracting $497.7 million in total flows in the first two trading sessions post-approval. The Fidelity Advantage Bitcoin ETF (FBTC) and Bitwise (BITB) followed closely, amassing $422.3 million and $237.90 million, respectively. However, the pre-existing Grayscale Bitcoin Trust (GBTC) saw an outflow of $579 million, as investors gravitated toward the new ETFs offering lower fees.

With an estimated 46,000 BTC absorbed in just two days, approximately 25.5 times the daily production of Bitcoin, a looming supply crunch is evident. This surge in demand from U.S. ETFs, coupled with global interest and retail investor participation, hints at a potential scarcity in the Bitcoin market, despite its price fluctuations.

Inflows Surge Post-ETF Approval

Following the approval of new Bitcoin ETFs, the market experienced substantial inflows totaling $1.4 billion in the first two trading sessions. Despite outflows from GBTC, the net inflows across all Bitcoin-related products amounted to an impressive $819 million. The trend aligns with earlier forecasts, indicating that Bitcoin ETFs could attract around $10 billion in their inaugural year of operation.

BlackRock CEO’s Evolutionary View on Bitcoin

Larry Fink, BlackRock’s CEO, has signaled a shift in perspective, acknowledging that his views on Bitcoin have evolved over the years. He now recognizes Bitcoin as a viable asset class, a sentiment reflected in the company’s substantial BTC acquisition and the successful launch of its Bitcoin ETF.

As the cryptocurrency market witnesses this surge in institutional interest and ETF-driven demand, the Bitcoin landscape may be on the brink of a new era marked by scarcity and heightened institutional participation.

Bitcoin is still ranked 1st with just a little movement of 0.6% in the last 24 hours, priced at $42,826 at the time of report.

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