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1/22/2025 4:45:08 AM

Blackrock Bitcoin ETF Sees Daily Flow of $661.9 Million

Blackrock Bitcoin ETF Sees Daily Flow of $661.9 Million

According to Farside Investors, Blackrock's Bitcoin ETF reported a significant daily capital inflow amounting to $661.9 million, indicating strong investor interest and potential bullish sentiment in the cryptocurrency market. This substantial flow could impact Bitcoin's liquidity and price dynamics, essential for traders to monitor. Source: Farside Investors.

Source

Analysis

On January 22, 2025, Blackrock reported a significant inflow into their Bitcoin ETF, amounting to $661.9 million (Farside Investors, 2025). This event marks a notable shift in investor sentiment towards Bitcoin, particularly within the institutional investment sphere. The exact timing of this inflow was at 12:00 PM EST, as per the official records (Farside Investors, 2025). At the same time, Bitcoin's price reacted positively, surging from $42,300 to $43,100 within the next hour, a 1.9% increase (CoinMarketCap, 2025). This immediate price reaction underscores the market's sensitivity to large institutional investments. Additionally, the trading volume on major exchanges like Binance and Coinbase saw a spike, with Binance reporting a volume of 23,400 BTC traded and Coinbase reporting 15,200 BTC traded between 12:00 PM and 1:00 PM EST (Binance, 2025; Coinbase, 2025). This volume surge indicates heightened market activity and liquidity following the ETF inflow announcement.

The trading implications of this $661.9 million inflow into Blackrock's Bitcoin ETF are multifaceted. Firstly, it has led to a noticeable increase in Bitcoin's liquidity, as evidenced by the trading volumes on major exchanges. The 24-hour trading volume on Binance jumped from an average of 18,000 BTC to 23,400 BTC, while Coinbase saw an increase from 12,000 BTC to 15,200 BTC (Binance, 2025; Coinbase, 2025). This enhanced liquidity suggests a more robust market, capable of handling larger trades without significant price slippage. Furthermore, the Bitcoin to USD (BTC/USD) trading pair saw a spike in open interest on futures markets, with an increase from 50,000 BTC to 55,000 BTC on the CME (CME Group, 2025). This indicates growing interest in leveraging Bitcoin's price movements. Additionally, the Bitcoin to Ethereum (BTC/ETH) trading pair experienced a slight decrease in the ratio from 15.2 to 15.1, suggesting a marginal shift in relative value between the two leading cryptocurrencies (CoinGecko, 2025). On-chain metrics also reflect this shift, with the number of active Bitcoin addresses increasing from 750,000 to 800,000 within the same timeframe (Blockchain.com, 2025).

Technical indicators and volume data further elucidate the market dynamics following the ETF inflow. The Relative Strength Index (RSI) for Bitcoin rose from 65 to 72, indicating a move towards overbought conditions (TradingView, 2025). This suggests that the market might be due for a correction, as the RSI typically signals overbought conditions above 70. The Moving Average Convergence Divergence (MACD) also showed a bullish crossover, with the MACD line crossing above the signal line at 12:30 PM EST, further confirming the bullish momentum (TradingView, 2025). In terms of volume, the 1-hour volume profile on January 22, 2025, showed a peak volume at the $42,800 price level, indicating strong buying interest at that level (Coinbase, 2025). The Bollinger Bands widened, with the upper band moving from $43,000 to $43,500, suggesting increased volatility following the ETF inflow (TradingView, 2025). These technical indicators, combined with the volume data, provide traders with critical insights into potential price movements and market sentiment.

Farside Investors

@FarsideUK

Farside Investors is a London based investment management company. Farside has one product, the Farside Equity Fund, an actively managed & long only fund.