BlackRock’s Bitcoin ETF posts record $1.1 billion in single-day net inflows

BlackRock’s iShares Bitcoin Trust (IBIT) attracted a record net inflows yesterday, worth $1.12 billion. Its previous record for highest daily net inflows was on Oct. 30, when it saw $872 million.

The unprecedented inflows into IBIT come a day after the spot bitcoin exchange-traded fund  set a new record of single-day trade volume of over $4 billion.

“This surge reflects strong investor confidence, driven by BlackRock’s reputation, Bitcoin’s recent rally, and favorable market conditions,” said Rachael Lucas, crypto analyst at BTCMarkets. “Contributing factors include institutional trust, FOMO, and lagged capital flows after price increases.”

Pro-crypto Republican candidate Donald Trump’s victory in the U.S. presidential election is another factor that boosted investor sentiment, Lucas added. Trump’s win on Wednesday triggered both the equities and crypto markets to rally, and bitcoin soared to break its all-time high.

The Federal Open Market Committee's meeting on Thursday  announced another 25-basis-point interest rate cut to between 4.50% and 4.75%.

“[Trump’s victory], combined with the Fed rate cut on Thursday, spurred institutions to make the plunge into crypto markets,” said Jeff Mei, COO at BTSE crypto exchange. “With more rate cuts coming, the prospect of pro-crypto regulations, and a continued China stimulus, it makes sense that institutions are flocking to Blackrock's Bitcoin ETF, and we expect even more in the coming months.”

With $1.12 billion flowing into IBIT, the 12 U.S. spot bitcoin ETFs had a total daily net inflow of $1.38 billion, which marks the highest total daily net inflows from spot bitcoin ETFs. The funds collectively had $2.76 billion in trade volume on Thursday.

Fidelity’s FBTC reported $190.92 million in net inflows, while Grayscale’s mini trust added $20.38 million, according to data from SoSoValue. Other bitcoin funds from Ark & 21Shares, Bitwise, VanEck and Valkyrie also reported net inflows yesterday. The 12 bitcoin funds have accumulated $25.49 billion in net inflows.

Spot ether ETFs have also surged in trade volume and net inflows this week following the election. The nine funds reported $79.74 million net inflows on Thursday. Spot ether ETFs had $466.39 million in trade volume, exceeding the usual daily volume between the $100 million and $200 million range.