Key Points
- Bitcoin reaches a historic high of $98,000, driving $774 million in daily inflows into spot Bitcoin ETFs.
- BlackRock’s iShares Bitcoin Trust (IBIT) leads the ETF inflows, attracting over $626 million in a single day.
Bitcoin has reached a landmark value of $98,000 for the first time. This monumental surge has led to exceptional activity in Bitcoin spot exchange-traded funds (ETFs) which experienced $774 million in daily net inflows during the rally.
The dramatic climb to $98,000 has revived market excitement, attracting institutional investors. Spot ETFs are seen as a regulated and convenient gateway into the cryptocurrency market. BlackRock’s iShares Bitcoin Trust (IBIT) accounted for a significant portion of the $774 million daily net inflow.
BlackRock Dominates ETF Inflows
BlackRock’s iShares Bitcoin Trust (IBIT) led the inflows, pulling in over $626 million in a day. This further solidifies its status as the leading Bitcoin ETF. With its assets under management exceeding $25 billion, IBIT has become a key player for institutional investors seeking exposure to Bitcoin.
BlackRock’s CEO, Larry Fink, labeled Bitcoin as an “independent asset class”, highlighting its potential role in the company’s future strategy. This sentiment aligns with BlackRock’s recent acquisitions of Bitcoin, surpassing $680 million within two days.
Other major players also gained from Bitcoin’s historic surge. Fidelity’s FBTC ETF came next, recording $133.94 million in inflows. Ark Invest’s ARK 21Shares ETF (ARKB) and Bitwise’s Bitcoin ETF (BITB) saw $3.77 million and $9.25 million respectively, indicating wider market participation.
Increase in Institutional Adoption
Institutional adoption of Bitcoin continues to rise, as shown by the significant inflows into spot Bitcoin ETFs. These products have become a regulated and secure option for institutions wanting exposure to the crypto market.
The increased interest aligns with Bitcoin’s sustained growth trajectory. Some analysts predict the asset contributing to a $30 trillion market in the future.
Predictions for Bitcoin’s future are increasingly optimistic. Many experts believe that the cryptocurrency could reach $100,000 before the year ends. Crypto.com CEO Kris Marszalek has added to this speculation, promising to award one Bitcoin to a follower if this milestone is achieved.
Famous trader Peter Brandt recently predicted Bitcoin could peak at $150,000 by August next year. According to Brandt, Bitcoin is currently in a critical phase of the bull market cycle. His insights align with the growing institutional confidence in Bitcoin as a store of value and growth asset.
Standard Chartered has also updated its Bitcoin forecast, suggesting the asset might reach $150,000 by the end of the year. This represents an upward revision from the firm’s earlier prediction of $120,000, reflecting the growing momentum in the market.
