On May 21, the BlackRock Bitcoin ETF, known as IBIT, recorded a net inflow of $530.6 million. This was the ETF’s biggest one-day inflow since May 5, when it reached $531.2 million, according to Farside Investors. The fund has not had an outflow since April 9.
The spot Bitcoin ETF added 4,931 BTC in a single day. During the same period, only 450 BTC were mined. This marks an accumulation of over ten times the daily production of new Bitcoin.
IBIT also posted its highest trading volume since January, when Bitcoin price reached previous highs. The ETF tracking account Trader T confirmed the volume spike. ETF Store President Nate Geraci commented,
“Given trading volume today, expect these inflow numbers to increase.”
Bitcoin ETF Inflow Across All Funds Hits $607M
On the same day, total inflows across all spot Bitcoin ETFs reached $607.1 million, based on data from Farside Investors. The BlackRock Bitcoin ETF accounted for the majority of it, while the Fidelity Bitcoin ETF, officially the Wise Origin Bitcoin Fund (FBTC), saw the second-highest inflow with $23.5 million.
Bloomberg ETF analyst Eric Balchunas described the surge as a result of Bitcoin’s ongoing rally. He noted the Bitcoin ETF volume now matches the levels last seen in January.
Balchunas stated,
“All the Bitcoin ETFs are elevated, most are gonna see 2x their average flows incoming.”
He also shared data showing that IBIT’s trading activity returned to levels observed during Bitcoin’s earlier peak.
On May 22, Bitcoin price reached a high of $111,897 on Coinbase, approaching the BTC $112K mark, according to TradingView.
Demand for Bitcoin ETFs Rises With Market Movement
As Bitcoin price nears $112,000, investor demand for spot Bitcoin ETFs has risen. The BlackRock Bitcoin ETF (IBIT) has consistently led in both inflow and volume. Market participants continue to turn to ETFs for exposure to the cryptocurrency.
Jeff Mei, Chief Operating Officer at crypto exchange BTSE, reported that Bitcoin ETF inflow reached $3.6 billion in May. He stated that investors are moving into Bitcoin ETFs in large numbers.
Mei added that the trend is supported by companies seeking to raise capital through public markets. The inflow reflects rising interest across institutional and retail investors.
Bitcoin Enters Price Discovery as ETFs See Record Activity
The BTC $112K level marked a new phase in price discovery. Jupiter Zheng, partner at HashKey Capital, explained that Bitcoin price is now in uncharted territory. He said, “Bitcoin is entering uncharted price discovery territory,” and noted that broader economic conditions are also influencing investor behavior.
Zheng pointed to geopolitical and economic uncertainty as one reason some investors are focusing on long-term value. At the same time, ETF activity shows that Bitcoin ETF volume and inflow remain high.
The BlackRock Bitcoin ETF continues to absorb more Bitcoin than the amount being mined daily. Combined with rising Bitcoin price and high demand, the current trend in Bitcoin ETF inflow and Bitcoin ETF volume signals continued institutional interest in the asset class.
