BlackRock, the world’s largest asset manager, has invested $7.5 million in a Bitcoin exchange-traded fund (ETF), according to daily flow data released Wednesday. The move comes as institutional investors increasingly view cryptocurrency as a legitimate asset class despite regulatory uncertainties and market fluctuations.
The iShares Bitcoin Trust (IBIT), BlackRock’s spot Bitcoin ETF, saw net inflows of $7.5 million on Tuesday, continuing its streak as one of the most popular cryptocurrency investment vehicles since its January launch. Analysts note this marks a significant shift from 2022 when major financial institutions largely avoided crypto exposure following the FTX collapse.
‘We’re seeing a measured but steady return of institutional money,’ said a market analyst at Bernstein who requested anonymity due to company policy. ‘BlackRock’s continued participation validates the ETF structure as a preferred gateway for traditional investors.’
Bitcoin prices have remained relatively stable between $60,000-$70,000 since February, with ETF flows becoming a key market indicator. Eleven spot Bitcoin ETFs collectively hold over 800,000 BTC ($50+ billion) as of March, per CoinGlass data.
Looking ahead, observers will watch whether SEC Chair Gary Gensler maintains his cautious stance on crypto following potential regulatory developments and the upcoming Bitcoin halving event in April, which historically impacts market dynamics.