The Great Bitcoin ETF Buying Frenzy
BlackRock's Bitcoin ETF experienced 15 consecutive days of capital inflows.
Here's a lowdown on the Bitcoin ETF buying madness sweeping across the US:
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- US Bitcoin ETFs snatch up 18,644 BTC in seven days, significantly outpacing the 3,150 BTC mined during the same period
- BlackRock's iShares Bitcoin Trust (IBIT) sees over 15 days of continuous purchasing, with a massive $530 million (5,613 BTC) added in a single day
- In just five trading days, Bitcoin ETF inflows surged to roughly $1.8 billion
- BlackRock expanded its stake in IBIT by a whopping 124% in Q1 2025, investing $314 million
- Bitcoin price hovers around $94,500, hinting at potential recovery to $100,000
Bitcoin ETFs: Institutional Demand on Steroids
Riding on the crest of surging institutional interest, US-based Bitcoin exchange-traded funds (ETFs) are gobbling up Bitcoin at an astonishing pace, outstripping the mining production, and signaling a watershed moment in the cryptocurrency market.
According to data from HODL15Capital, US Bitcoin ETFs snapped up a whopping 18,644 Bitcoin in a single week—that's almost six times the 3,150 BTC mined during the same period. This frenzied buying spree has created a jarring supply imbalance that might shape the future price trajectory.
BlackRock's Bitcoin Feeding Frenzy
BlackRock's iShares Bitcoin Trust (IBIT) has emerged as the undisputed king of Bitcoin accumulation. The fund experienced a staggering $2.5 billion in inflows over just five trading days and maintained an unbroken 17-day streak of inflows. During this period, IBIT added 5,613 BTC worth a mind-boggling $530 million in a single day.
Since its inception, IBIT has seen a whopping $44 billion in total inflows. BlackRock, the asset management giant, boosted its stake in IBIT by 124% during the first quarter of 2025, bumping up its investment to $314 million. Eric Balchunas, Senior ETF Strategist for Bloomberg, remarked that "IBIT is hoovering up BTC like a madman," placing it 8th in year-to-date flows with an impressive $6.4 billion.
Despite these eye-popping inflows, Nate Geraci, the president of ETF Store, emphasized that spot Bitcoin ETFs are operating under constraints due to limited distribution. Many wealth management platforms still impose restrictions on financial advisers and brokers from recommending or providing access to Bitcoin ETPs.
Market situation and price action
Recent Bitcoin price movements have presented mixed signs. After gaining 4% to reach a six-week high of $97,700 on May 2, Bitcoin retreated to around $94,000—roughly the same level as a week ago. The market conditions might be laying the groundwork for future price increases.
According to crypto analyst Kyledopps, "the froth is gone - the reset is real," suggesting that unrealized gains have been flushed out, potentially setting the stage for recovery. Industry watchers are closely monitoring Bitcoin's journey towards the $100,000 mark. However, continued ETF inflows could lend additional momentum to future price surges.
Spot Bitcoin ETFs have expanded into a nearly $110 billion investment category despite these distribution limitations. The market is eagerly waiting for regulatory decisions that could further expand institutional access to digital assets, with over 70 US crypto ETFs awaiting SEC decisions this year. Canary Capital's spot Litecoin ETF filing faced a second SEC deadline on May 5.
In a nutshell, the record levels of institutional demand for Bitcoin ETFs are dwarfing supply, with inflows reaching unheard-of multiples of daily averages. This trend points to a maturation of the cryptocurrency markets and growing trust in regulated crypto investment vehicles.
- The Bitcoin ETF buying spree in the US has surpassed the mining production, spotlighting an unprecedented imbalance in the cryptocurrency market.
- In just one week, US Bitcoin ETFs have amassed 18,644 Bitcoin, far outpacing the 3,150 BTC mined during the same period.
- BlackRock's iShares Bitcoin Trust (IBIT) added 5,613 BTC worth $530 million in a single day, marking a significant increase in its stake.
- BlackRock boosted its investment in IBIT by 124% during the first quarter of 2025, adding $314 million to its holdings.
- The Bitcoin price has been fluctuating, hovering around $94,500, hinting at a potential recovery to $100,000.
- As of now, spot Bitcoin ETFs have grown into a nearly $110 billion investment category, despite some distribution limitations, and various crypto ETFs await regulatory decisions this year.
