BlackRock’s IBIT Bitcoin ETF Posts Record $1.1 Billion Inflow As Bitcoin Hits New ATH Following Fed Rate Cut

[8/11/2024]
BlackRock’s IBIT Leaves Spot Bitcoin ETF Rivals Trailing In The Dust FOMC Keeps Rate Cut Streak Going Related Articles:

BlackRock’s IBIT spot Bitcoin ETF recorded a record $1.1 billion after the US Federal Open Market Committee announced a 25 basis point rate cut, sending BTC to a new all-time high. IBIT saw $1.119 billion enter reserves on November 1. 7 after two consecutive days of outflows totaling $113.3, according to data from Farside Investors. Bitcoin responded by hitting a new ATH of $943, according to CoinMarketCap.

BlackRock’s IBIT Leaves Spot Bitcoin ETF Rivals Trailing In The Dust

BlackRock’s IBIT fund outperformed its spot Bitcoin ETF rivals by a large margin in terms of inflows yesterday. The second biggest inflows were posted by Fidelity’s FBTC, with $190.9 million being added to its capital reserves. 

Other Bitcoin ETF funds, including ARKB, BITB, HODL, GBTC and BTC ,also recorded inflows. Bitwise’s BITB and Ark’s ARKB recorded positive flows of $13.4 million and $17.6 million, respectively. 

Similarly, investors sent $4.3 million, $7.3 million and $20.4 million to HODL, and Grayscale’s GBTC and BTC funds. The remaining Bitcoin ETF funds recorded no new flows on the day.

FOMC Keeps Rate Cut Streak Going

IBIT’s massive inflows come amid an interest rate cut from the Federal Reserve’s FOMC. Following the 50 basis points reduction it announced for September, the FOMC lowered its benchmark overnight borrowing rate to a target range of 4.50%-4.75%.

The latest interest rate cut had a positive impact on the crypto market, which saw its capitalization climb over 2% in the last 24 hours. 

Market leaders Bitcoin (BTC) and Ethereum (ETH) kept their bullish momentum going following a spike after Donald Trump won the US election, posting gains of more than 1% and 3%.

BTC is subsequently up over 9% on the weekly time frame, while ETH rose 16% in the same period.

Sophie Nguyen