The BlackRock Bitcoin ETF (IBIT) experienced its largest-ever single-day inflow on Thursday, November 7, with $1.12 billion and 14,607 BTC added to the fund.
This surge pushed total inflows for IBIT beyond $27 billion since its launch in January 2024, solidifying its position as one of the year’s top-performing ETFs. The spike in inflows coincides with the Federal Reserve’s recent decision to cut interest rates by 25 basis points, which has injected new liquidity into the market, acting as a catalyst for Bitcoin and cryptocurrency investments.
The impact of the Fed's rate cut was immediate. On the same day, the total inflows into US spot Bitcoin ETFs reached $1.371 billion, with nine Bitcoin ETFs collectively acquiring 17,880 BTC—nearly 40 times the daily Bitcoin production rate of 450 BTC. BlackRock’s IBIT alone contributed a significant portion, with $1.8 billion in daily trading volume and its total assets under management (AUM) soaring past $34 billion, holding 447,281 BTC. This puts IBIT’s holdings nearly double that of Michael Saylor’s MicroStrategy, which holds 252,220 BTC.
The strong demand for Bitcoin ETFs comes at a time when there is growing discourse around a strategic Bitcoin reserve for the United States. Wyoming Senator Cynthia Lummis and other lawmakers are proposing a roadmap for such a reserve, but an official declaration from the Trump administration is needed for this to proceed. With Trump’s victory in the recent U.S. presidential election, investor confidence in Bitcoin has surged. The subsequent two-day period saw more than $2 billion in inflows into Bitcoin ETFs, indicating that market participants are bullish on Bitcoin’s future under the incoming administration.
As a result of these developments, Bitcoin’s price has continued to rally, reaching a new all-time high of $79,943 on Thursday, up 2% from the previous day. With a 10% increase on the weekly chart, Bitcoin is once again trending toward the $100,000 mark, fueled by the bullish sentiment in both the cryptocurrency market and the broader financial environment.
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