BlackRock’s iShares Bitcoin Trust (IBIT) has experienced a significant surge in investor interest, with net inflows reaching $530.6 million on May 21—the highest since May 5, when it saw $531.2 million. This influx marks IBIT’s largest single-day net inflow in over two weeks, according to Farside Investors. Notably, IBIT has not recorded any outflows since April 9, underscoring sustained investor confidence.
On the same day, IBIT acquired 4,931 BTC, surpassing the 450 BTC mined during that period by over tenfold. This aggressive accumulation highlights the growing demand for Bitcoin exposure through ETFs.
The trading volume for IBIT also peaked, reaching its highest level since January, as reported by ETF tracking account Trader T. Nate Geraci, president of The ETF Store, commented, “Given trading volume today, expect these inflow numbers to increase.”
Overall, the total inflow across all 11 U.S. spot Bitcoin ETFs on May 21 amounted to $607.1 million. Fidelity’s Wise Origin Bitcoin Fund (FBTC) followed IBIT with $23.5 million in inflows. Bloomberg ETF analyst Eric Balchunas described the situation as a “classic feeding frenzy,” attributing it to Bitcoin’s recent price rally, which saw it approach $112,000 in early trading on May 22.
This surge in ETF inflows coincides with Bitcoin reaching a new all-time high, trading at $111,351, as per recent data. The cryptocurrency’s price has been buoyed by increasing institutional interest and favorable regulatory developments in the U.S.
Jeff Mei, COO at crypto exchange BTSE, noted that investors are “crowding into Bitcoin ETFs,” with net inflows totaling $3.6 billion in May. He added, “We believe this trend will continue as long as companies continue to tap public markets for more capital.” Mei also suggested that this momentum could accelerate if the Federal Reserve opts to cut interest rates in the coming months.
Jupiter Zheng, a partner at HashKey Capital, anticipates increased volatility as Bitcoin enters “uncharted price discovery territory.” He emphasized that unstable geopolitical and macroeconomic factors are prompting investors to consider Bitcoin’s long-term value.
The recent performance of Bitcoin ETFs, particularly IBIT, underscores the growing role of institutional investment in the cryptocurrency market. As Bitcoin continues to break new ground, the interplay between ETF inflows and price dynamics will be a critical area to watch.
Other Articles
Bitcoin Bulls Bet on $300K as BTC Hits $109K
