Bitcoin Spot ETFs See Historic $1.37B Inflow, Led by BlackRock

• Bitcoin and Ethereum ETFs saw record-breaking inflows, showing strong institutional interest in crypto.
• BlackRock’s IBIT ETF reached an all-time high with $1.12 billion in one-day inflows.

On November 7, the crypto market reached significant milestones in terms of institutional investing. Reaching a record-breaking $1.376 billion net inflow, Bitcoin spot ETFs represent a turning point in the history of the asset on financial markets, according to SoSoValue.

Source: SoSoValue

Record Inflows Reflect Rising Institutional Confidence in Crypto ETFs 

BlackRock’s IBIT fund among the ETFs had an amazing one-day inflow of $1.12 billion, setting a new high and underscoring the growing interest of big investors.

Following a Federal Reserve statement with a 25 basis point rate drop that generated more market liquidity, this movement developed. Institutions thus started looking for attractive hedging solutions against traditional market volatility in crypto-based financial instruments such as Bitcoin and Ethereum ETFs.

Though on a different scale, Ethereum also had really outstanding inflows. Ethereum spot ETFs had a net inflow of $79.74 million that same day, the third highest single-day inflow for the asset in ETF form.

These numbers not only show how widely digital assets are becoming accepted in mainstream finance but also show how increasingly important regulated ETF products are in closing the gap between institutional and crypto investors.

Changing macroeconomic conditions and the availability of regulated options for crypto investment seem to be connected to the current flood of money into both Bitcoin and Ethereum ETFs. Investors are adjusting portfolios, searching for inflation hedges and alternative assets with growth potential after the Federal Reserve slashed rates.

ETFs are a prudent decision among economic uncertainty since they offer a regulated and easily available way for institutional money to enter the crypto market without directly buying the assets.

Driving its value and confirming its position as a digital asset deserving of mainstream financial attention, institutional investment has been instrumental in raising Bitcoin to new heights.

Though not as significant, Ethereum’s inflows show a continuous desire to diversify within the crypto market, particularly with assets that provide value in decentralized finance (DeFi) and smart contract applications.

This more general tendency implies that, even if Bitcoin still takes front stage, Ethereum’s importance in institutional portfolios may keep rising, particularly as more money searches diverse digital asset exposure.

Beside that, CNF previously reported that on U.S. Election Day, BlackRock’s IBIT ETF recorded an unprecedented $4.1 billion in trading volume. BlackRock now owns more than 400,000 BTC.