Bitcoin’s relentless rally has entered a new phase as U.S. spot Bitcoin exchange-traded funds (ETFs) recorded an unprecedented $3 billion in net inflows over the past week, propelling the cryptocurrency’s price near the $95,000 mark. This surge in institutional investment marks the strongest week for Bitcoin ETFs since March and signals renewed confidence in digital assets amid shifting macroeconomic conditions.
BlackRock’s IBIT: The New ETF Powerhouse
At the forefront of this ETF boom is BlackRock’s iShares Bitcoin Trust (IBIT), which has emerged as the clear market leader. IBIT alone accounted for $1.3 billion of last week’s inflows, pushing its assets under management to a staggering $54 billion. On April 23, IBIT posted its largest single-day inflow since January, attracting $643 million and helping drive total spot Bitcoin ETF inflows to $917 million that day.
Industry experts are taking note of IBIT’s meteoric rise. Michael Saylor, Chairman of MicroStrategy and a prominent Bitcoin advocate, declared at a recent investor event that IBIT “will be the biggest ETF in the world in ten years”. While the current largest ETF, Vanguard’s S&P 500 fund, holds over $590 billion, analysts like Bloomberg’s Eric Balchunas acknowledge that IBIT’s trajectory-if sustained-could see it challenge the top spot under extraordinary circumstances.
Institutional Demand Tightens Bitcoin Supply
The record-breaking ETF inflows are not just a headline-they are fundamentally reshaping Bitcoin’s market dynamics. As ETFs absorb newly mined Bitcoin at an unprecedented pace, the available supply on exchanges is shrinking. “We’re witnessing one of the largest institutional land grabs in Bitcoin history,” said Eric Balchunas, ETF analyst at Bloomberg. This tightening supply, combined with growing demand, is widely expected to support higher price floors and increased market stability.
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Market Outlook: Bitcoin Eyes $100,000
The ETF-driven buying frenzy has reignited bullish sentiment across the crypto market. Bitcoin’s price now hovers just below $95,000, with major institutions and analysts raising their price targets. ARK Invest, for example, recently lifted its “bull case” target for Bitcoin to $2.4 million by 2030, citing the accelerating pace of institutional adoption.
Strategic Shifts and Trading Trends
The surge in ETF inflows has also revived popular trading strategies. The annualized basis trade-where investors go long on the ETF and short Bitcoin futures-has nearly doubled to 10% since early April, reflecting increased market activity and confidence. Meanwhile, the ETF landscape continues to evolve, with BlackRock’s IBIT recently winning “Best New ETF” at the annual etf.com awards.
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Conclusion
The latest wave of ETF inflows underscores a pivotal moment for Bitcoin and the broader crypto market. As institutional investors double down on digital assets, ETFs like BlackRock’s IBIT are not only breaking records but also redefining the future of finance. With Bitcoin’s price surging and supply tightening, all eyes are now on whether the world’s largest cryptocurrency can sustain its momentum-and potentially break through the $100,000 barrier in the months ahead.
For more updates on Bitcoin and ETF market trends, stay tuned to our coverage.