BlackRock Bitcoin (BTC) ETF Spot Market Debut Triggers Altcoin ETF Craze

BlackRock spot Bitcoin (BTC) ETF saw massive inflows following the broader market rebound. Bitcoin ETFs have continued to dominate institutional

Institutions are flocking to digital assets with BlackRock’s (NYSE:BLK) iShares BTC Trust (NYSEARCA:IBIT) seeing massive inflows. A total of 5,250 Bitcoins entered the fund in the last 24 hours.

Institutions are pivoting back to crypto assets. BlackRock’s demand for BTC surged to 5,250 Bitcoins in the last 24 hours. This signals growing institutional demand for BTC and other crypto assets.

The surging demand pushed the price past the $100K mark in the US trading hours. BlackRock’s inflow also outpaced the total daily production, signaling high institutional demand as bulls resumed accumulation.

Data from Farside showed that the total inflows on January 16 stood at $626 million, with IBIT and ArkInvest’s ARKB leading the chart. IBIT captured 85% of demand, while the latter saw a huge $155 million in the same time frame.

IBIT volumes outpaced both institutional investors and BTC production. The fund recorded 12 times more than the daily 450 Bitcoin production.

Meanwhile, Fidelity’s FBTC notched $4.4 million, while Bitwise’s fund attracted $2.7 million. BlackRock has remained a popular option for most institutional investors since its launch.

The fund has over $55.6 billion in assets under management (AUM), exposing traditional investors to Bitcoin.

BlackRock's bid for an ETF in 2023 sparked interest from other traditional firms that filed similar applications. After the approval, the surge in applications and demand ignited the bull cycle.

This drove the asset price to an all-time high above $73K in Q1 2024. Crypto enthusiast Solana Legend tipped a higher target for the broader market due to surging ETF demand and other factors.

“We have the richest man in the world joining forces with the president to kick off a golden age for emergent technology BTC ETF is the most successful ETF launch of all time Strategic Crypto Reserve being floated. Adjust your targets higher.”

Altcoin ETF Craze Kicks In

The success of Bitcoin products increased investor appetite, leading to a demand for altcoin products. Several firms filed for Solana and XRP products after the launch of the spot Ethereum ETF.

Rising optimism also signaled huge inflows into these assets ahead of anticipated pro-crypto legislation. While the present administration was hostile to the market, Donald Trump pledged a pro-market approach.

Demand for spot XRP products in the United States is a major factor in the sharp increase in price.