The Bitcoin ETF of BlackRock records record inflows in September: over $180 million

On September 25, the Bitcoin ETF by BlackRock recorded the largest daily inflow of the month, surpassing 180 million dollars. This increase follows the Federal Reserve’s decision on rates and reflects the growing interest of investors.

Let’s see all the details below. 

The BlackRock ETF marks the largest daily inflow in a bear month for Bitcoin

As anticipated, BlackRock’s spot Bitcoin ETF recorded the highest daily inflow of the month among all similar ETFs in the United States, surpassing 184 million dollars in a single day. 

This result has surprised analysts, as September is generally considered a difficult month for Bitcoin and for the cryptocurrency market in general.

While other platforms have seen outflows, the interest in BlackRock’s ETF seems to reflect a change in sentiment from institutional investors towards Bitcoin as a strategic asset.

The success of BlackRock contrasts with the outflows experienced by other Bitcoin ETFs during the same period. For example, the Bitwise Bitcoin ETF recorded inflows of only 2.1 million dollars on September 25. 

On the other hand, more well-known ETFs such as the Fidelity Wise Bitcoin Origin Fund and the Ark 21Shares Bitcoin ETF have experienced outflows of 33.2 and 47.4 million dollars respectively. 

The comparison highlights the growing confidence of investors in BlackRock and the company’s ability to attract capital even in a volatile crypto market.

Cumulative and positive trend

The data provided by Farside indicates that the inflow on September 25th from BlackRock was the first of the month to exceed the threshold of 100 million dollars. 

Previously, only the Ark 21Shares Bitcoin ETF had recorded significant inflows, with 99.3 million dollars on September 13.

Furthermore, the cumulative flows into spot Bitcoin ETFs in the United States have been positive for five consecutive days, reaching a total of 496.7 million dollars. 

These inflows indicate a sustained growth trend for spot Bitcoin ETFs, driven by a combination of economic and financial factors.

One of the key events that contributed to the increase in inflows was the decision of the Federal Reserve on September 18 to reduce interest rates by 50 basis points. 

This move, widely anticipated by investors, had a significant impact on the cryptocurrency market. After the announcement, Bitcoin recovered the $60,000 level, a value that had not been reached since August 30. 

The cryptocurrency industry has welcomed this decision, seeing it as a sign of economic stability that could encourage institutional adoption of assets like Bitcoin.

The growing demand for spot Bitcoin ETFs was highlighted by Ki Young Ju, CEO of CryptoQuant, in a post on September 26. 

According to Ju, this question is contributing to strengthening the position of the United States as a global leader in the cryptocurrency sector, surpassing other regions in terms of Bitcoin holdings volume. 

Ju highlighted how the interest in spot ETFs on Bitcoin represents a key factor for the adoption and growth of the crypto market, providing investors a regulated option to access the asset without owning it directly.

The issue of custody with Coinbase

In the meantime, BlackRock has had to face some concerns regarding the onchain custody of the Bitcoin used for its ETFs. On September 23, a request for modification was submitted to the regulation of its Bitcoin ETF. 

This follows concerns raised by investors about the practices of Coinbase, the company that acts as custodian for BlackRock’s funds.

In response, BlackRock introduced an amendment requiring Coinbase to complete Bitcoin withdrawals within 12 hours. A measure aimed at reassuring investors about the security of their assets.

This change demonstrates BlackRock’s focus on transparency and security in the Bitcoin ETF market. A fundamental aspect to attract large institutional investors.