BlackRock Fund Powers US Bitcoin ETFs to a Record Daily Inflow

11/08/2024 14:34
BlackRock Fund Powers US Bitcoin ETFs to a Record Daily Inflow

(Bloomberg) -- US exchange-traded funds investing in Bitcoin posted a record daily net inflow of $1.38 billion, bolstered by President-elect Donald Trump’s embrace of the digital-asset industry and promise of supportive regulations.Most Read from BloombergKey Ballot Initiatives and Local Races Highlight Views on Abortion, ImmigrationParis Restricts Through Traffic in City CenterFrom Housing to Immigration, Key Ballot Initiatives and Local Races to FollowBlackRock Inc.’s iShares Bitcoin Trust acc

(Bloomberg) -- US exchange-traded funds investing in Bitcoin posted a record daily net inflow of $1.38 billion, bolstered by President-elect Donald Trump’s embrace of the digital-asset industry and promise of supportive regulations.

Most Read from Bloomberg

BlackRock Inc.’s iShares Bitcoin Trust accounted for about 81% of Thursday’s deluge, which came a day after the ETF’s trading volume jumped to an all-time peak, according to data compiled by Bloomberg. The $1.1 billion of net subscriptions for the fund — also known as IBIT — was also unprecedented.

The demand for the world’s biggest Bitcoin fund is another sign of how Trump’s pledge to put the US at the center of the digital-asset industry is reshaping the crypto market. The largest token — now viewed as a quintessential so-called Trump trade — surged to a record high of $76,956 on Thursday.

Caroline Bowler, chief executive officer of crypto exchange BTC Markets Pty, said there is a “significant risk of a feedback loop, where rising ETF inflows push Bitcoin prices higher, attracting more capital.”

Much depends now on Trump following through on campaign vows, such as creating a strategic Bitcoin stockpile and appointing regulators enamored with digital assets. Some technical indicators suggest a two-month rally driven by optimism about Trump’s reelection is now due for a pause.

Bitcoin was steady at about $76,000 as of 6:35 a.m. Friday in London. The cryptocurrency’s roughly 80% advance so far in 2024, partly fueled by Federal Reserve interest-rate cuts, exceeds the returns from traditional investments such as global stocks and gold.

Most Read from Bloomberg Businessweek

©2024 Bloomberg L.P.

Read more --->