The largest Bitcoin ETF in the U.S. reported $1.2 billion in new investments over the past week, signaling renewed institutional interest in crypto assets. Analysts suggest this surge is linked to expectations of a Federal Reserve rate cut, which could make Bitcoin more attractive as an inflation hedge.
BlackRock’s IBIT Leads the Surge
BlackRock’s iShares Bitcoin Trust (IBIT) led the inflows, attracting $1.1 billion in a single day, marking a new record. This unprecedented surge follows a period of mixed performance across Bitcoin ETFs, with some funds experiencing outflows while others continue to gain traction.
Market Sentiment and Institutional Confidence
The broader Bitcoin ETF market has seen fluctuations, with Grayscale’s GBTC continuing to experience net outflows, while Fidelity’s FBTC and Ark Invest’s ARKB have recorded steady inflows. Analysts believe that institutional investors remain bullish on Bitcoin, viewing it as a long-term store of value, particularly in light of macroeconomic uncertainties.
Impact of Federal Reserve Policy
The Federal Open Market Committee (FOMC) recently announced a 25-basis-point interest rate cut, further fueling optimism in the crypto market. Lower interest rates tend to increase demand for alternative assets, including Bitcoin, as investors seek higher returns outside of traditional financial instruments.
Shogun Lin
