BlackRock’s exchange-traded spot Bitcoin fund (ETF), which manages assets nearing $70 billion, signals a growing interest among institutional investors, even though retail investment appears to be slowing.
BlackRock is the largest asset manager in the world. It has purchased Bitcoin worth over $69 billion (BTC) through its iShares Bitcoin Trust (IBIT) ETF, representing over 3.25% of the total BTC supply.
BlackRock IBIT ETF currently controls more than 54.7% the US market share for all US Bitcoin ETFs. This represents 6.12% the current Bitcoin stock. according to Dune data.
BlackRock has reached a milestone just over a year ago, and half. debuted for trading On Jan. 11, 2020.
This milestone is a result of sustained flows into the ETF markets. US Bitcoin ETFs have seen net positive flow for eight days in a row, with $388,000,000 in Bitcoin being received on Wednesday. according Farside Investors
IBIT is also among the top 25 ETFs in terms of assets managed.
BlackRock’s ETF has become the 23rd biggest ETF in terms of crypto-based and traditional financial products. according VettaFi data is available.
Some analysts still say the ETF demand is offset by miners’ profit-taking.
“A breakout may need a new catalyst or sentiment shift,” Iliya Kalchev is an analyst with Nexo. He said that investors and corporations are accumulating large amounts of money and are utilizing their treasury plans to counteract profit taking.
Related: Genius Group Bitcoin treasury grows 52% as 1,000 BTC goal reaffirmed
High-value investors dominate BTC transactions
Glassnode data shows that Bitcoin activity is dominated by large value transfers. The total number of Bitcoin transactions is down, but the average transaction value has increased to $36,200.
“This trend implies that larger entities continue to utilize the Bitcoin network, with the throughput per transaction rising even as overall activity by count declines,” according A Glassnode Report released Thursday.
In addition, over 89% percent of the network’s activity is now accounted for by transactions above $100,000. “reinforces the view that high-value participants are becoming increasingly dominant,” Glassnode was said.
Related: Nasdaq-listed Lion Group bets big on Hyperliquid with $600M treasury
Retail investors seem to be less interested in the market as large investors accumulate.
Bitcoin’s short term holder group has dropped to just 4.5 Million BTC. This is down by over 800,000. BTC from 5.3 Million BTC held on May 27. “new money is drying up in Bitcoin,” according According to the Friday report by analytics platform CryptoQuant.
CryptoQuant says that if the investor demand for Bitcoin continues to weaken it may be near $92,000, the onchain realized prices of traders, which act as significant levels during bull cycle.
Magazine: US risks being ‘front run’ on Bitcoin reserve by other nations: Samson Mow
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Source: cointelegraph.com
