BlackRock's iShares Bitcoin Trust (IBIT) Sets New Single-Day Inflow Record Amid Surging Demand for US Bitcoin ETFs
BlackRock's iShares Bitcoin Trust (IBIT) has set a new record for its largest single daily inflow since its listing in January. This surge in demand for the US spot Bitcoin exchange-traded fund (ETF) comes amid heightened investor interest.
IBIT pulled in a total of $1.12 billion on Thursday, beating out its prior record of $872 million set on October 30, according to data from SoSoValue. The fund, which has emerged as a dominant force among its 10 other rivals, now has a net asset value of $34.2 billion, bolstered by Bitcoin's heightened value.
"We're in a goldilocks scenario right now of monetary easing, political certainty, and robust US data," said Pav Hundal, lead market analyst at crypto exchange Swyftx. "Capital is everywhere, and right now, it's flooding into the ETFs at an extraordinary velocity."
Investor interest in the world's largest cryptocurrency is at an all-time high, driving record-setting heights for Bitcoin, which recently surpassed $76,870. This has also led to surging activity among altcoins and meme coins.
"The ETFs are accumulating Bitcoin faster than it can be created by a factor of two to one," Hundal added. "Sooner or later, this will tip across into a broad-based crypto rally. Probably sooner."
The record inflows come as IBIT posted a staggering $4 billion in trading volume on Wednesday, vastly exceeding its nearest rival, Fidelity. This surge in trading activity is believed to be driven by President-elect Donald Trump's victory in the 2024 U.S. presidential election, which is viewed by many in the industry as a boon for digital assets.
Trump's victory over Vice President Kamala Harris has been seen as a positive development for the cryptocurrency market. Trump has promised to protect crypto mining interests, establish a Bitcoin reserve, and usher in favorable policy, which has further fueled investor optimism and demand for US-based Bitcoin ETFs like IBIT.
The price of bitcoin hit a new high on Wednesday, climbing above $75,000 and smashing its previous record set in March. Other cryptocurrencies also soared, including ether, the world's second most popular cryptocurrency after bitcoin, which rallied 8%. Another token, dogecoin, rocketed as much as 18%. It's the favorite cryptocurrency of billionaire Elon Musk, one of Trump's most prominent supporters.
Crypto-related shares outperformed the broader stock market. Coinbase, one of the biggest cryptocurrency exchanges, leaped 17%. Online brokerage Robinhood Markets, which offers crypto trading, soared 12% and MicroStrategy, which says it is the "largest corporate holder of bitcoin," jumped 10%.