BlackRock's IBIT Bitcoin ETF Posts Record $1.1 Billion Inflow As Bitcoin Hits New ATH Following Fed Rate Cut

BlackRock’s IBIT Bitcoin ETF Posts Record $1.1 Billion Inflow As Bitcoin Hits New ATH Following Fed Rate Cut

Updated: 08 November 2024

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

BlackRock’s IBIT spot Bitcoin ETF (exchange-traded fund) saw a record $1.1 billion in inflows after the US Federal Open Market Committee (FOMC) announced a 25 basis points rate cut, sending BTC to a new all-time high (ATH).

IBIT saw $1.119 billion enter its reserves on Nov. 7 following two consecutive days of outflows totaling $113.3 million, according to data from Farside Investors. Bitcoin reacted by surging to a new ATH of $76,943, according to CoinMarketCap.

BlackRock’s IBIT Leaves Spot Bitcoin ETF Rivals Trailing In The Dust

BlackRock’s IBIT fund outperformed its spot Bitcoin ETF rivals by a large margin in terms of inflows yesterday. The second biggest inflows were posted by Fidelity’s FBTC, with $190.9 million being added to its capital reserves.

Other Bitcoin ETF funds, including ARKB, BITB, HODL, GBTC and BTC ,also recorded inflows. Bitwise’s BITB and Ark’s ARKB recorded positive flows of $13.4 million and $17.6 million, respectively.

Similarly, investors sent $4.3 million, $7.3 million and $20.4 million to HODL, and Grayscale’s GBTC and BTC funds. The remaining Bitcoin ETF funds recorded no new flows on the day.

Told y’all it was prob gonna be big, altho even I am surprised it’s that big, by far biggest one day flow of any btc etf ever. https://t.co/Q5MPDMrTYv

— Eric Balchunas (@EricBalchunas) November 8, 2024

FOMC Keeps Rate Cut Streak Going

IBIT’s massive inflows come amid an interest rate cut from the Federal Reserve’s FOMC. Following the 50 basis points reduction it announced for September, the FOMC lowered its benchmark overnight borrowing rate to a target range of 4.50%-4.75%.

The latest interest rate cut had a positive impact on the crypto market, which saw its capitalization climb over 2% in the last 24 hours.

Market leaders Bitcoin (BTC) and Ethereum (ETH) kept their bullish momentum going following a spike after Donald Trump won the US election, posting gains of more than 1% and 3%.

BTC is subsequently up over 9% on the weekly time frame, while ETH rose 16% in the same period.