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Bitcoin ETF Investors Are Long-Term Accumulators, Says BlackRock

Highlights:

  • BlackRock’s Bitcoin ETF investors are accumulating, even during the bear market.
  • BlackRock’s IBIT continues to dominate Bitcoin ETF inflows with strong institutional demand.
  • Bitcoin has hit a new monthly high at $73,800 amid the ongoing geopolitical tensions.

In an interview with CNBC, BlackRock has said that its Bitcoin ETF investors are primarily long-term investors. Despite the downtrend in Bitcoin’s price, 90% of investors are still accumulating the cryptocurrency. BlackRock, which manages assets worth $14 trillion, stated that its investors are still committed to the asset.

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The company pointed out that its Bitcoin ETF investors are not motivated by short-term speculation but fundamental investment strategies. This contradicts the claims that the institutional interest in Bitcoin has waned during the correction. According to BlackRock, positive inflows into its product suggest long-term confidence despite Bitcoin trading at levels well below its all-time highs.

BlackRock IBIT Leads BTC ETF Market with Major Inflows

The Bitcoin ETF market is still dominated by BlackRock’s iShares Bitcoin Trust (IBIT). The fund has garnered more than $55 billion in assets under management (AUM) since its launch. IBIT led the market with $46.49 million in Bitcoin inflows on March 12. Its strong performance is a part of a larger trend in Bitcoin ETFs that have been experiencing a steady recovery.

Bitcoin ETFs recorded a total net inflow of $53.8 million on March 12, marking the fourth day of positive inflows. The momentum is strong and is being fueled by institutional investors returning to the market. Most of the inflows have been centered in large asset managers, such as BlackRock, signaling a renewed interest in digital assets.

Meanwhile, the introduction of the iShares Staked Ethereum Trust ETF (ETHB) by BlackRock contributed to the increasing interest in crypto ETFs. During the first day, the fund registered a $15.5 million trading volume and net asset value of $106.1 million, indicating a high level of investor interest.

Although inflows have been gaining momentum recently, BlackRock’s Gold ETF has experienced major outflows, amounting to $900 million since the US-Iran war began. During the same time, the Bitcoin ETF recorded inflows of $1.1 billion. This shift points to the growing preference of institutional investors towards Bitcoin as compared to traditional assets such as gold.

Bitcoin ETFs Inflows Drive Bitcoin Price Recovery

The price of Bitcoin shows an impressive rebound fueled by the continuous inflows witnessed in the ETF products. Bitcoin hinted at a recovery at the start of the week, when the price was trading around the $65k mark. Since then, BTC has been on a steady upward journey amid the uncertainty in the market following the US-Iran war. As Crypto2Community reported earlier, Bitcoin price could rally toward $96K as the geopolitical concerns continue to ease.

The price has hit a monthly high after reaching $73,800, recording a 2% increase over the last 24 hours. This latest rally has pushed the weekly and monthly gains to 4% and 7%, respectively. As of this writing, the price has pulled back to trade around the $71,812 level. Furthermore, the market cap and trading volume have climbed to $1.43 trillion and $57 billion.

Bitcoin ETF Investors Are Long-Term Accumulators, Says BlackRock
Bitcoin Price Chart: CoinMarketCap

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