BlackRock’s iShares Bitcoin Trust ETF Sees 69 Days of Inflows amid Bitcoin Halving Event
BlackRock’s iShares Bitcoin Trust ETF, trading under the ticker “IBIT,” has been experiencing inflows for 69 consecutive days, according to Bloomberg Intelligence ETF analyst Eric Balchunas. This streak coincided with the fourth Bitcoin halving event, which took place at block height 840,000, reducing the mining reward from 6.25 to 3.125 bitcoins.
The Bitcoin halving has triggered a supply squeeze, as part of a strategy to limit the total supply of Bitcoin to 21 million and enhance its scarcity. Despite a recent slowdown in ETF inflows, data from Farside Investments shows that Bitcoin ETF flows are gaining momentum following the bullish halving event.
Geopolitical tensions in the Middle East, particularly the Israel-Iran conflict, have impacted the Bitcoin price, with last week seeing a sell-off and increased volatility. Bitcoin, usually considered a hedge against global uncertainty, remained stable on Monday, trading around $66,300.
Basile Maire, co-founder of D8X, explained that the conflict in Israel strengthened the Dollar, leading portfolio managers to reduce exposure to high-volatility assets like Bitcoin. This macro-driven price action in Bitcoin is largely influenced by ETF trading, with political events having a short-lived impact on financial markets.
Despite short-term fluctuations, Bitcoin’s potential as a hedge against global uncertainty remains intact in the long run. The integration of ETFs has amplified the impact of macro-events on Bitcoin prices, highlighting the cryptocurrency’s evolving role in the financial landscape.
