The Unlikely Rise of BlackRock’s Bitcoin ETF: Almost $1 Billion in a Single Day!

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Prepare to be Amazed:

  • IBIT managed to charm $970.9 million from investors on Monday, marking the second-largest daily inflow in its short life. Meanwhile, other poor souls like Fidelity’s FBTC and ARK’s ARKB saw their fortunes plummet.
  • The CME Bitcoin Futures open interest has been on a bit of a diet, dropping for four days straight. On the plus side, the annualized basis yield is strutting at a solid 8%.

Ah, the BlackRock iShares Bitcoin (BTC) Trust ETF (IBIT) – the rising star of the Bitcoin world. This mighty ETF saw a jaw-dropping $970.9 million in inflows on Monday, making it the second-largest daily net inflow since its debut in January 2024. What’s that? Another investment fad you ask? Well, apparently, no one told the investors, as they came rushing in.

Monday alone accounted for $591.2 million of fresh capital. And guess what? All this wealth was siphoned from the competition. Fidelity’s FBTC? $86.9 million gone. Bitwise’s BITB? A mere $21.1 million slipped through their fingers. And poor ARK’s ARKB? A stunning $226.3 million vanished without a trace.

But it’s not just about the flows, oh no. This rise coincides with a 7.2% increase in the price of Bitcoin over the last seven days. It’s now trading at the modest sum of $94,900 – no big deal, right?

Since April 22, IBIT has brought in over $4.5 billion in net inflows, completely defying the general market trends. If that doesn’t make you do a double-take, I don’t know what will.

Industry experts, of course, are having a field day with this. Nate Geraci, the President of The ETF Store, had this to say:

“Nearly $1 billion into iShares Bitcoin ETF today… Second-largest inflow since January 2024 inception. I still remember when there was ‘no demand’.“

Meanwhile, Eric Balchunas, Senior Bloomberg ETF Analyst, echoed sentiments of cautious optimism:

“ETFs are in two-steps-forward mode after taking one step back, exactly the pattern we predicted.“

And in the world of derivatives, things aren’t exactly looking bleak. Open interest (OI) on CME Bitcoin Futures has been shrinking for four days straight, now sitting at 132,750 BTC. But here’s the silver lining: the annualized basis yield has climbed from 5% to 9% in April, meaning this decline might be the calm before the storm. A little rebound might be on the horizon—hooray for volatility!

Why does this matter? Well, in a typical basis trade, investors purchase spot bitcoin and short bitcoin futures to lock in the price difference. When the yield is high, futures demand rises, and voila – open interest climbs. But as the yield shrinks, traders lose interest, and the market contracts. It’s all very dramatic, isn’t it?

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2025-04-29 13:18