Bitcoin's supply is shrinking at the speed of Larry Fink's aversion to cryptocurrencies waning over recent years. The reason for the growth in cryptocurrency markets is IBIT from Blackrock. Fink's fund has a dragon's appetite, because only in the last week IBIT from BlackRock “devoured” as much as 58% of inflows to BTC ETF funds. This means almost USD 2.5 billion in one week.
IBIT from BlackRock has no intention of stopping – how will it impact the market?
Last week, as much as 58% of inflows into BTC ETF funds concerned only the iShares Bitcoin Trust, i.e. IBIT from Blackrock. The dragon's appetite of the Finka corporation is clearly visible in the fact that only on Friday, February 16, IBIT recorded a net inflow of USD 331 million. The interest in bitcoin is perfectly reflected in the price, which has already reached USD 52,000 and is constantly growing.
Short-term investors who decided to invest their capital in BTC, without buying the digital asset itself, may be very susceptible to any price fluctuations. It is worth noting, however, that the frenzy of interest in BTC ETFs falls at the end of the cryptocurrency winter. The BTC halving is ahead of us, which will only bring a full-fledged bull market, which was previously visible after each halving.
Why BlackRock's sudden interest in bitcoin?
IBIT from BlackRock already has over 100,000 bitcoins under its management. It is worth adding, however, that Larry Fink's corporation was not favorable to cryptocurrencies from the very beginning. On the contrary. Fink has repeatedly disparaged BTC and the digital asset market, claiming it is merely a way to launder money anonymously. So why did a corporation managing assets worth USD 9 trillion change its mind about Satoshi Nakamoto's cryptocurrency?
The answer is simple. The cryptocurrency market is currently a huge capital. Fink himself admitted in an interview for CNBC that bitcoin can easily be considered the digital equivalent of gold. BlackRock entered the cryptocurrency industry with a bang worthy of a dragon and it was known that with such a gigantic capital base, it would generate profits amounting to millions of dollars.
