BlackRock Reports Record ETF Inflow and Rising US Bitcoin Holdings
As of September 26, CryptoQuant founder Ki Young Ju announced that the United States is seeing a resurgence in Bitcoin (BTC) holdings, indicating a growing dominance in the market compared to other countries. This rise in BTC holdings is attributed to the increasing demand for spot exchange-traded funds (ETFs) in the country.
According to the data presented by Ki Young Ju, the US reserve ratio chart shows a consistent increase in Bitcoin holdings over the past year. However, these holdings have not yet reached the levels observed during the all-time high of BTC in March 2024.
BlackRock, one of the leading investment management firms, experienced the highest inflow of funds for a month, with a total of $184.4 million pouring into its IBIT ETF. This surge in inflows comes as a result of the rebound in spot Bitcoin ETF demand, as indicated by the positive 30-day net change in total holdings reported by Ki Young Ju.
In the ETF market, September 25 marked a significant milestone with aggregate inflows totaling $106 million, based on preliminary data from Farside Investors. This marked the fifth consecutive trading day of inflows for investment products, bringing the total aggregate across all spot ETFs to nearly $18 billion since their launch in January.
Despite the overall positive trend, outflows were recorded from Fidelity’s FBTC and Ark’s ARKB funds, with losses of $33.2 million and $47.4 million, respectively. Bitwise (BITB) saw a modest inflow of $2.1 million, while other funds, including those from Grayscale, reported zero flows during this period.
Nate Geraci, president of ETF Store, commented on the recent reports suggesting a slowdown in Bitcoin ETF flows. He noted that conflicting opinions on the market dynamics could be influencing these observations, with some viewing the situation pessimistically while others remain optimistic about the future of BTC.
Looking ahead, veteran trader and chart analyst Peter Brandt highlighted that Bitcoin is currently following a pattern of lower highs and lower lows. To break this cycle, Bitcoin would need to surpass the highs recorded in July, which were just above $70,000.
Despite the challenges in the market, Bitcoin continues to be a key indicator of liquidity, with its price hovering around $63,520 at the time of writing. The cryptocurrency faced resistance at $64,500 multiple times in recent weeks but also found support at $62,850, leading to a period of consolidation.
The broader crypto market experienced a 2.1% decline in total capitalization, indicating that altcoins were facing pressure in the past 24 hours. This volatility underscores the importance of monitoring market trends and staying informed about developments in the cryptocurrency space.
In conclusion, the resurgence of Bitcoin holdings in the US and the record inflow of funds into BlackRock’s ETFs signal a growing interest in digital assets among investors. Despite the challenges faced by Bitcoin in breaking through key resistance levels, the market remains dynamic and full of opportunities for those willing to navigate the fluctuations. Stay informed and stay ahead in the ever-evolving world of cryptocurrencies.