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Bitcoin Hits $65,000 as $543 Million in ETF Inflows Drive Surge; BlackRock Purchases 4,000 Shares

Aug 26, 2024, 09:57 PM

Bitcoin's price surged to approximately $65,000, marking a significant increase from around $60,000 earlier in the week. This rise was fueled by strong inflows into Bitcoin exchange-traded funds (ETFs), which saw a total of $543 million in inflows last week, the largest amount in five weeks. The inflows were notably influenced by Federal Reserve Chair Jerome Powell's comments suggesting potential interest rate cuts, which have led to a broader rally in risk assets. BlackRock has been particularly active, purchasing 4,000 shares of its own Bitcoin ETF, increasing its holdings to 16,000 shares. The firm also bought 3,516 Bitcoin recently, further demonstrating its commitment to the cryptocurrency market. Meanwhile, Ethereum ETFs faced challenges, with outflows totaling $465 million since their launch, primarily due to significant withdrawals from Grayscale's Ethereum Trust. In contrast, BlackRock's Ethereum ETF recorded inflows of $1 billion, indicating a divergence in investor sentiment between Bitcoin and Ethereum products.