The cryptocurrency market is experiencing a notable surge, with BlackRock’s spot Bitcoin exchange-traded fund (ETF) leading the charge. Investors have demonstrated strong interest in this fund, as indicated by a remarkable streak of inflows that has persisted for 16 consecutive days. As of May 6, an additional 280 Bitcoin, valued at approximately $36 million, have flowed into the BlackRock iShares Bitcoin Trust.
According to ETF Store President Nate Geraci, the fund is on the verge of reaching an impressive milestone of $5 billion in new capital. This remarkable achievement underscores the growing acceptance and demand for Bitcoin ETFs, echoing sentiments expressed by industry observers who previously underestimated their potential.
“I remember when naysayers didn’t think spot Bitcoin ETFs would take in $5 billion in total last year,” Geraci remarked. “IBIT alone has done this in just a few weeks, more than a year after launch.”
Since its last outflow on April 9, the BlackRock fund has accumulated around $4.7 billion in inflows, making it the only spot BTC ETF in the United States to record inflows this week. In contrast, other funds have experienced either asset outflows or stagnant flows since May 1. Notably, the last trading day on May 6 saw an aggregate outflow of $86.4 million, largely attributed to Grayscale’s GBTC shedding nearly $90 million, thus partially offsetting the BlackRock inflows.
Bloomberg ETF analyst Eric Balchunas noted that the consistent inflows into the BlackRock fund bode well for the future, asserting that this trend boosts confidence in forecasts predicting that Bitcoin ETFs could surpass gold’s assets under management within the next three to five years.
In related developments, BattleShares has filed for four new ETFs, aiming to offer varied exposure by pitting Bitcoin against Ethereum and gold. One of these new ETFs is expected to take a long position on Bitcoin while shorting Ether.
Bitcoin Approaches Resistance Levels
As of May 7, Bitcoin prices have returned to significant resistance, peaking at $97,500 during early trading. While the asset briefly touched the May 2 price levels, it ultimately fell back to around $96,538.
This recent spike may be partially attributed to New Hampshire’s recent legislation, making it the first U.S. state to pass a strategic Bitcoin reserve law. Dennis Porter, co-founder and CEO of Satoshi Action Fund, highlighted that this development could significantly increase the probability of similar legislation being adopted by other states.
Market sentiment is further buoyed by reports of high-level trade discussions scheduled between the United States and China in Switzerland over the coming weekend. Treasury Secretary Scott Bessent emphasized the importance of renewing fair trade practices while addressing existing tariffs and barriers.
As the cryptocurrency landscape continues to evolve, the increasing momentum of Bitcoin ETFs and supportive regulatory developments signify a promising future for Bitcoin and the broader digital asset ecosystem.
