BlackRock Rakes in $500 Million in a Day… Are Institutions Rushing Back to Bitcoin and Ethereum?

▲ BlackRock, Bitcoin (BTC), Ethereum (ETH)/AI generated image ©

BlackRock attracted over $500 million in funds through Bitcoin (BTC) and Ethereum (ETH) related exchange-traded funds (ETFs) in a single day. As Bitcoin surpassed $86,000, US Bitcoin and Ethereum spot ETFs saw a total net inflow of $1.27 billion, indicating a resurgence in institutional demand.

According to crypto media outlet Finbold on September 22 (local time), BlackRock's iShares Bitcoin Trust (IBIT) recorded a net inflow of $381.4 million in a single day on the 21st. Ethereum products, iShares Ethereum Trust (ETHA) and iShares Staking Ethereum Trust (ETHB), also saw inflows of $110.1 million and $12.8 million, respectively. The total funds flowing into BlackRock's three products amounted to $504.3 million in one day.

Expanding the scope to the entire US spot ETF market, the scale of capital inflow is even larger. On the 21st, Bitcoin spot ETFs saw a net inflow of $999 million, and Ethereum spot ETFs saw $270 million, bringing approximately $1.27 billion in new funds into the two product categories. IBIT accounted for approximately 38% of the total Bitcoin spot ETF inflows that day, while ETHA and ETHB accounted for approximately 45.5% of the total Ethereum spot ETF inflows. Funds also flowed into products from other asset managers such as Fidelity, ARK Invest, and Grayscale, and no significant large-scale outflows were observed from major Bitcoin and Ethereum spot ETFs.

The inflow of ETF funds coincided with a strong rebound in the cryptocurrency market. Bitcoin surpassed $86,000 during Monday's trading, rising to its highest level since January. Notably, the net inflow into Bitcoin spot ETFs on that day was the ninth largest since the product's launch in the US in January 2024. Fund inflows also continued for three consecutive trading days, marking the first continuous net inflow trend in the last two weeks.

Institutional funds continued to flow in despite recent negative factors such as the failure of the Senate cloture vote on the US crypto market structure bill, the Clarity Act, and the US Federal Reserve's (Fed) interest rate hikes. As of September, the cumulative net inflow into Bitcoin spot ETFs increased to $1.31 billion, following the $3.52 billion net inflow recorded in August. Finbold explained that investor interest continues despite ongoing macroeconomic concerns.

However, despite the short-term recovery in fund inflows, annual losses have not yet been fully recovered. Bitcoin spot ETFs are still in a net outflow state of approximately $450 million since the beginning of the year. With a massive $1.27 billion flowing into Bitcoin and Ethereum spot ETFs in a single day, the market's attention has turned to whether the institutional fund inflow trend, which has continued for three consecutive trading days, will persist.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*