BlackRock's spot Bitcoin exchange-traded fund (ETF) manages assets close to the $70 billion mark, indicating growing interest from institutional investors, although retail fund inflows seem to be slowing.
BlackRock, as the world's largest asset management company, has acquired over $69.7 billion worth of Bitcoin (BTC) through its iShares Bitcoin Trust (IBIT) ETF, accounting for more than 3.25% of the total BTC supply.
According to Dune data, BlackRock's IBIT ETF currently controls over 54.7% of the market share of all spot Bitcoin ETFs in the U.S., which collectively hold 6.12% of the total Bitcoin supply of 21 million.
This milestone for BlackRock was achieved in less than a year and a half since the first trading of the U.S. spot Bitcoin ETF on January 11, 2024.
This milestone comes as the ETF market continues to see inflows. According to Farside Investors, U.S. Bitcoin ETFs recorded net positive inflows for eight consecutive days, attracting $388 million in Bitcoin alone on Wednesday.
IBIT has also entered the ranks of the 25 largest ETFs globally by assets under management.
According to VettaFi data, BlackRock's fund has grown to become the 23rd largest ETF in the world, encompassing both cryptocurrency and traditional financial products.
Nevertheless, some analysts indicate that the demand for ETFs is being offset by profit-taking and selling pressure from miners.
“A breakthrough may require new catalysts or a shift in sentiment,” said Iliya Kalchev, an analyst at Nexo, to Cointelegraph. He added that the supply being absorbed by long-dormant wallets currently exceeds the production from miners, noting that corporate financial strategies and accumulation by large investors continue to offset profit-taking.
On-chain data from Glassnode shows that large transfers are dominating Bitcoin network activity. Although the total number of transactions has decreased, the average transaction size has now reached $36,200.
“This trend indicates that larger entities continue to use the Bitcoin network, and while overall activity measured by transaction count is declining, the throughput per transaction is still increasing,” Glassnode stated in a report released on Thursday.
Additionally, transactions over $100,000 now account for over 89% of network activity, which Glassnode claims “reinforces the view that high-value participants are increasingly dominating.”
While large investors are accumulating, it seems that new retail investors entering the market are becoming fewer.
According to a report from analysis platform CryptoQuant on Friday, the group of short-term holders of Bitcoin has dropped to just 4.5 million BTC, down over 800,000 BTC from 5.3 million BTC held on May 27, indicating that “new funds for Bitcoin are drying up.”
If investor demand continues to weaken, Bitcoin may find its next significant support level around $92,000, according to CryptoQuant data, which is the price realized by traders on-chain and serves as an important support level during bull market cycles.
Related: Santiment: Bitcoin (BTC) long-short position divergence, market sentiment falls into "extreme fear" again
Original: “Despite 'new funds' drying up, BlackRock ETF has absorbed 3.25% of Bitcoin (BTC) supply”
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