Bitcoin price skyrockets as BlackRock ETF hits new records

After the Bitcoin (BTC) price experienced a slump in the last few weeks of January, February is off to a good start. The biggest cryptocurrency is already up almost 4% in the last 24 hours. A large influence on the BTC price seems to be the ongoing inflow of funds to the much desired Bitcoin Spot Exchange Traded Funds (ETFs). Especially BlackRocks fund, the biggest asset manager in the world, has seen record inflows of capital. 

Since 23rd of January BTC has been on an impressive run. After the strong rally of the coin throughout the end of last year and the start of January the price soared from $25.000 to around $49.000, an increase of 96%. The price surge was mainly fed by the expectation of new Bitcoin Spot ETFs on the American market. After the launch bitcoins value fell as low as $39.000 on January 23rd. Momentum has returned as the BTC price has returned above the $44.000 range, returning a 3,8% increase in the last 24 hours and almost a 12% return in the last two weeks. 

BlackRock Bitcoin ETF in top 5

A big influence on the value of BTC is likely the ongoing inflow of funds towards the most popular Bitcoin Spot ETFs, which consist of the BlackRock iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin Fund (FBTC) which launched on January 11th. The market seems to favour ETFs of trusted and established names in the finance industry and the numbers show.  After only 17 days after its launch the IBIT fund has become the top 5 ETF based on capital inflows. In total the year to date money inflow of the BlackRock fund has totaled $3,2 billion. 

The most popular funds still consist of S&P 500 ETFs, such as the iShares Core S&P 500 fund which saw a total of $13 billion of capital inflow year to date. Within the top 10 also another Bitcoin Spot ETF has garnered a ranking, which is the FBTC fund from large investment firm Fidelity

Impact on the BTC price

Analysts and investors, mainly within the crypto community, have believed in a strong influence of the BTC Spot ETFs on the cryptocurrency market. HIstorically bitcoin price has mainly been stimulated by retail investors but the introduction of the new funds on the American stock market has provided institutional investors easy access to the popular cryptocurrency. The large funds of these institutional organisations can result in continuous large capital inflows which subsequently will positively impact the BTC price. 


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