Why BlackRock is Buying Bitcoin Agressively Before The U.S Election 2024?

BlackRock, Fidelity, and other institutions are actively buying Bitcoin. Recently BlackRock’s spot Bitcoin ETF, IBIT, set a record on Oct. 30, with the largest single-day inflow of $875 million since its inception in January. This record inflow surpassed the previous high of $849 million set by IBIT in March and marked the 13th consecutive day of positive flows for the fund.

Over this incredible run, the fund has garnered roughly $4.08 billion of new investments, as institutional appetite for Bitcoin exposure via traditional financial instruments continues expanding.

Massive ETF Inflows Breaking Records

James Steffart, a Bloomberg analyst in a chat on Bloomberg TV discussed the wave of Bitcoin ETF inflows over the last couple of weeks. He believes that the last 13 days have been extreme, with 12 of 13 days seeing inflows and the total inflows just shy of $5 billion. While some of this could be momentum chasing as the price goes up and some of it could be related to the Trump odds of victory, he stated.

Interestingly, a Trump victory is being priced in, even though it is not guaranteed and there is a huge demand coming into these ETFs. Nevertheless, irrespective of the election results, Bitcoin is expected to rally massively and reach newer highs, which could be the reason why institutional adoption is soaring higher.

However, Ethereum on the other side is not seeing the same sort of demand institutionally. The standout between Bitcoin and Ethereum has been significant. 

There is not a lot of demand for Ethereum ETFs. He underscored that one of the reasons could be because Ethereum is somewhat complex, while people understand Bitcoin a lot easier as digital gold, and digital store of value. He believes that the investors are not ready and fully equipped to understand what is going on there. 

Why is the US Government bond 10-year yield going up?

The bond market is going up due to the lack of trust of people in the short-term economy. Eric Diton, the Wealth Alliance President and Managing Director stated that ‘Gold and Bitcoin have further to go’ because “there is no plan to deal with this $35 trillion in debt and growing”. Although he has been listening to both the candidates, “he has not heard of any talks about any kind of reduction in spending.”

The Best Time To Buy BTC?

Matt Hougan in a recent interview claimed that this is the best single time to invest in Bitcoin from a risk-adjusted perspective. He underscored that the biggest catalyst for Bitcoin looking forward to 2025 projections is the move of institutional adoption. He stated that all the existential risks of Bitcoin have washed away, and the biggest catalyst is the move of institutional adoption, with 800 million ETF inflows, in a single day alone, and believes that this is a tidal wave of institutional assets moving into the space. 

What do you think? Will Bitcoin soon make its way all up or there will be further roadblocks to it breaking its previous All-time high? Stay tuned.