BlackRock’s Bitcoin ETF Breaks Records Amid Market Turbulence

BlackRock’s iShares Bitcoin ETF (IBIT) demonstrated resilience amid Tuesday’s market turmoil by acquiring over $778 million worth of bitcoin (BTC). The fund’s investors seized the opportunity to buy the dip as bitcoin experienced a rapid drop after reaching a record high above $69,000.

IBIT’s remarkable performance included the addition of 12,600 bitcoin, surpassing its previous daily highs. Nasdaq data revealed trading volumes exceeding 107 million shares, equivalent to over $3.6 billion price-weighted, setting a new record after last week’s high of $3.3 billion.

The significant inflows coincided with bitcoin’s surge to an all-time high, followed by a sharp reversal and a more than 10% price drop to below $60,000. Despite the volatility, the cryptocurrency saw a modest recovery, reaching the $63,000 area late in the U.S. trading day.

BlackRock’s ETF now boasts a holding of over 183,000 bitcoin, closing in on MicroStrategy’s 193,000 stack. Since its launch on Jan. 11, IBIT has maintained its status as the most popular bitcoin ETF, accumulating assets under management of about $12 billion, surpassing competitors like Fidelity’s FBTC at $7.2 billion.

The overall ETF market experienced a significant milestone, breaking the $10 billion mark in volumes on Tuesday, surpassing the previous week’s record. Despite the market challenges, bitcoin trades just under $66,000 as of U.S. morning hours on Wednesday, with the CoinDesk 20 (CD20) losing 5.8% over the same 24-hour period.