BlackRock scoops up 11,500 BTC during dip as ETF leads the pack – CryptoSlate

BlackRock reportedly acquired stunning assets 11,500 Bitcoin from the available supply during the recent sell-off since the launch of the Spot Bitcoin ETF.

This amount is significant considering that only 900 BTC is issued every day. The purchase by BlackRock effectively means that approximately 13 days worth of Bitcoin production has been absorbed by one player.

Larry Fink, CEO of the asset management firm, recently said that his views on Bitcoin have evolved significantly over the years and that he now considers it a “viable asset class.” He said that

shortage of supply

Based on the data, the iShares Bitcoin Trust (IBIT) Spot ETF managed only about 25% of the trading volume over the same two-day period. From this, we can infer that around 46,000 BTC has been removed from the system in the past two days due to the influence of other players such as Grayscale Bitcoin Trust (GBTC).

If this trend continues, the Bitcoin market could face severe supply shortages. It is estimated that 46,000 BTC will be absorbed in two days, which equates to 23,000 BTC per day, and this rate is approximately 25.5 times his daily Bitcoin production.

The heavy uptake of US ETFs, not to mention additional demand from retail investors and other global ETFs, suggests that the available supply of Bitcoin is tight.

Despite Bitcoin's price fluctuations, the underlying asset remains resilient. Despite the high fees associated with GBTC, the successful launch of a Bitcoin ETF is a strong indication of growing interest from institutional investors. It could herald a new era of scarcity in the Bitcoin market.

ETF inflows reach $819 million

The first two trading sessions after approval of new Bitcoin exchange-traded fund (ETF) saw large inflows. Total amount: $1.4 billion. After accounting for outflows from GBTC, total net inflows for all Bitcoin-related products amounted to $819 million.

A breakdown of this activity shows a staggering 500,000 individual trades, for a total trade volume of $3.6 billion. His iShares Bitcoin Trust (IBIT) at BlackRock led the pack in this initial surge, garnering $497.7 million in total flows.

The Fidelity Advantage Bitcoin ETF (FBTC) followed suit, accumulating $422.3 million. Bitwise (BITB) was also heavily impacted, attracting $237.9 million in investment.

In contrast, existing product Grayscale Bitcoin Trust (GBTC) recorded $579 million in outflows during the same period. Part of this change is due to investors opting for new Bitcoin ETFs that offer lower fees.

This trend is in line with previous predictions by ETF analysts, who expected the Bitcoin ETF could collect about $10 billion in its first year of operation. It is worth noting that GBTC is one of the largest holders of Bitcoin, managing over $27 billion.