BlackRock’s IBIT Fund Attracts $328 Million Amid 3% Bitcoin Decline

BlackRock's iShares Bitcoin Trust (IBIT) investors bought the recent dip in Bitcoin price.Data shows that IBIT led the U.S. spot BTC ETFs inflow on Monday, October 21, with inflows of $329 million.

This significant inflow came after Bitcoin dropped 3% to $66,975, underscoring investors' growing confidence.

Investors Buy the Bitcoin Dip, Confidence Grows

Recently, BlackRock's iShares Bitcoin Trust (IBIT) investors funneled a massive $329 million into the fund. The move followed a price dip that took Bitcoin from a high of $69,130 down to a daily low of $66,975.

However, not all spot Bitcoin ETFs saw the same level of investor interest that day. According to data, BlackRock's fund was the only major ETF to receive such a significant investment.

Fidelity's Wise Origin Bitcoin Fund (FBTC) came in second, with a much smaller inflow of $5.9 million. Other Bitcoin ETFs either had zero flows or saw outflows.

This trend highlights BlackRock's dominance in the spot BTC ETF market. It also signals that investors, especially in BlackRock's fund, are increasingly willing to buy during dips in the market.

BlackRock's IBIT has firmly established itself as the leading spot Bitcoin ETF product. On October 21, the fund crossed an impressive milestone, surpassing $23 billion in total net inflows.

This marked the third time in four trading days that the fund received over $300 million in new investments.

According to data from Farside Investors, BlackRock's IBIT has consistently outpaced its competitors. This makes it the top choice for investors looking to gain exposure to Bitcoin through an ETF.

Bloomberg ETF analyst Eric Balchunas pointed out that BlackRock's IBIT posted the third-largest inflows of any ETF product in 2024. It trailed behind only BlackRock's S&P 500 index funds (VOO and IVV) and Vanguard's ETF products, showing its rising popularity.

Market Reaction and Future Outlook

Bitcoin's price drop came after an impressive run that saw it rise from $59,000 to nearly $70,000 between October 11 and 21.

Some traders had been expecting a pullback after such a strong rally. Crypto trader Jelle noted that the market was selling off slightly today, as expected," indicating that many were prepared for a price correction.

Market selling off slightly today, as expected - and thats okay.

Weekly chart looks primed.

Be patient, don't get shaken out.

The fun part has only just begun. pic.twitter.com/ccTcVvPVkr

- Jelle (@CryptoJelleNL) October 21, 2024

Other traders, like Emperor, speculated that BTC could continue to dip, possibly reaching the $62,000 level before finding support.

Bitcoin Price Update

1. Backtest of $66,000 level held and we moved higher. Want to see price hold above Previous Month High for continuation higher. My target of $69,000 has now been hit and I'm looking to relong dips.

2. I told you most will be scared to buy the dip at... pic.twitter.com/1NwHonte72

- Emperor (@EmperorBTC) October 21, 2024

This comes after Bitcoin posted its highest weekly close in five months on October 20, signaling that the market remains volatile.

Today, October 22, 2024, BTC is trading around $66,881 with a volume of over $37.65 billion. Investors seem confident that Bitcoin's long-term prospects remain strong, even as short-term price drops occur.

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