• Tue. Apr 16th, 2024

BlackRock’s iShares Bitcoin Trust Acquires 6,495 BTC: What To Know

Steve Kornacki

BySteve Kornacki

Jan 24, 2024
BlackRock's iShares Bitcoin Trust Acquires 6,495 BTC: What To Know

BlackRock’s iShares Bitcoin Trust has made significant waves by acquiring 6,495 BTC from Coinbase Prime. As reported by Lookonchain, this move has added $254.7 million worth of Bitcoin to the trust’s portfolio.

This acquisition has propelled the total BTC holdings of BlackRock’s iShares Bitcoin Trust to 39,925 BTC, valued at approximately $1.59 billion. This move by the popular asset management firm underscores the increasing institutional interest in cryptocurrencies, particularly Bitcoin’s perception as a store of value and investment asset.

Grayscale Faces Outflows Amid Shifting Crypto Investment Landscape

Meanwhile, another asset manager, Grayscale, famed for its GBTC product, has experienced massive BTC outflows worth about $505 million. However, inflows into newer ETFs partially offset these outflows, totaling around $396 million at the time of writing.

Despite the positive momentum for BlackRock’s Bitcoin Trust, Grayscale’s outflows remain a significant bearish factor for the leading cryptocurrency. The flow of funds among these ETFs affects the overall market sentiment and the price movements of cryptocurrencies.

Bitcoin’s Volatility Surges

Meanwhile, the broader cryptocurrency market is undergoing heightened volatility in line with BTC’s price movement. Industry experts, including Fidelity Executive Director Jurrien Timmer, foresee continued fluctuations in BTC’s price.

Nevertheless, Timmer remains optimistic that the SEC’s approval of spot Bitcoin ETFs represents a significant step in the maturation of the cryptocurrency market. However, he added that this approval also introduces an element of increased volatility, as evidenced by the ongoing market fluctuations.

Spot BTC ETF Approval Will Impact More Than Halving – Blockstream CEO

In a related development, Blockstream’s CEO and Bitcoin OG, Adam Back, has posited that Bitcoin ETF inflows will dwarf the influence of the upcoming BTC halving scheduled for April 18th on BTC’s price and the broader crypto market.

Sharing his insights with his X followers, Back opined that traditional finance substantially drives momentum within the crypto market. According to him, the ETF inflows will wield a 30x effect on BTC’s price than the much-anticipated halving event.

The seasoned Bitcoin enthusiast mentioned that most players in the traditional finance industry, guided by broker sentiment, are momentum buyers. Hence, price surges from smart money movements trigger buying recommendations, generating more market activity.

Back also pointed out that BTC’s fundamentals are currently “off the charts.” He added that the market’s present state could be likened to an early bull market. He cited Fidelity’s FBTC’s higher ETF inflow than BlackRock’s IBIT in the last 48 hours as a positive trend in new investor engagement.

Understanding Bitcoin’s Recent Price Dip

Despite the recent dip in Bitcoin’s price, Back believed it is more about fear, uncertainty, and doubt (FUD) rather than significant structural net selling. Furthermore, the inventor of Hashcash, a pioneering proof-of-work system, asserted a lack of big net sellers left in the market.

Regarding market behavior, Back highlighted the tendency for investors to create their dips by selling in fear with the hope of buying at lower prices. However, he cautioned that it is typical to mistime such maneuvers, inadvertently buying back at higher price levels.

Steve Kornacki

Steve Kornacki

Steve Kornacki, a respected author at Big Trends Signals, uses his deep online trading acumen to create comprehensive guides and balanced reviews, empowering traders in their digital pursuits.

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