Surge in Bitcoin ETF Purchases: BlackRock Dominates AcquisitionsSurge in Bitcoin ETF Purchases: BlackRock Dominates Acquisitions Spot Bitcoin exchange-traded funds (ETFs) in the US collectively spent over $84 million on Thursday, indicating a continuation of their significant investments. This substantial buying spree has been sparked by the Securities and Exchange Commission’s (SEC) approval of these funds in January. Among the ETF providers, BlackRock has emerged as a leading player, allocating over $1 billion to new Bitcoin purchases in July alone. The asset manager’s substantial investments have fueled the buying momentum and bolstered optimism in the crypto space. Significance of Spot Bitcoin ETFs: Spot Bitcoin ETFs allow investors to directly own Bitcoin, unlike futures-based ETFs that involve ownership of contracts linked to the cryptocurrency’s price. As a result, purchasing spot Bitcoin ETFs contributes directly to the market capitalization of Bitcoin. Current Market Dynamics: The price of Bitcoin remained relatively stable on Friday, trading around $65,000. The absence of major economic news provides a pause for market participants to assess technical factors and consider future developments.
- Spot Bitcoin ETFs Spend $84 Million on New Bitcoin Purchases on Thursday
- Markets are optimistic about the future of the broader crypto space
- BlackRock has spent more than $1 billion acquiring new Bitcoin so far in July
Bitcoin ETFs Buy $84 Million Worth of BTC on Thursday
Bitcoin exchange-traded funds in the US, 11 in total, collectively bought more than $84 million worth of Bitcoin on Thursday. The large amount is a continuation of the new investment vehicles’ ongoing buying spree after the Securities and Exchange Commission gave them the green light in January of this year.
Recently, new acquisition movements have been observed in the ETF industry that offers real Bitcoin to both retail traders and professional investors. The gradual flow of money into the ETFs is an indicator of continued investor interest in the crypto space.
The more money these ETFs allocate to Bitcoin, the better the liquidity will be when users trade the native cryptocurrency. In addition to trading, market participants may decide to hold the token for the long term. This is also when continuous liquidity is required to ensure that the funds can meet any withdrawal request.
BlackRock stands out as best performer in new acquisitions
With that in mind, one major player stands out as a solid liquidity provider, or LP. BlackRock, the world’s largest asset manager that oversees $10 trillion in diverse investments, has spent a significant amount of money acquiring new Bitcoin.
The asset manager has spent more than $1 billion on new Bitcoin purchases in July so far, outperforming all other ETF issuers, including Grayscale, ARK and Fidelity.
BlackRock has been driving the buying momentum in Bitcoin ETFs, which has created excitement and helped brighten the investment landscape. For that reason, traders and investors are optimistic about the long-term growth of the spot BTC ETF industry. What’s so special about it?
What are Spot Bitcoin ETFs?
Spot Bitcoin ETFs allow the individual or institutional investor to own actual Bitcoin, and not any kind of derivative. Futures-based ETFs, on the other hand, allow market participants to own futures contracts that are linked to the price of Bitcoin. By purchasing a spot Bitcoin ETF, traders are essentially contributing to the overall market capitalization of the underlying asset — Bitcoin.
What’s Happening to Bitcoin’s Price Today?
With that in mind, the price of the original cryptocurrency began trading relatively flat and unchanged on Friday. Bitcoin traded around $65,000 apiece as traders prepared to enter the day. No major economic news is expected, giving the market a chance to catch its breath or delve deeper into technical analysis.
