- BlackRock claims that at least 90% of Bitcoin ETF investors are buying despite bear markets.
- Data from Coinglass verifies the claim as true, with $583 billion in inflows since the last 5 days.
- Total inflows in the last month exceeded $55 billion.
- Bitcoin ETF is primarily purchased by investors who find it technically challenging to buy and safeguard Bitcoin with self-custody. Most of them are investors in purely traditional markets.
- All of these are taking place despite a war situation in the Middle East, the ATH Gold markets, and uncertainty in global trade.
- Bitcoin could slowly be replacing traditional reserve assets like Fiat and Gold in investor portfolios worldwide.
BlackRock Claims 90% of ETF Buyers Accumulating
BlackRock has made a major claim for Bitcoin ETFs that arond 90% of ETF buyers have been HODLing Bitcoin despite bear markets. Most of these buyers are either institutions or retail investors, all of them either unwilling or incapable of handling the logistics of acquiring direct Bitcoins.
Further, the multi-trillion asset manager said that the investors have been buying in high numbers despite a clear bear market. Bitcoin has been struggling to cross $70k and has failed at least thrice in the current month. Moreover, it is at least 47% down from its all-time high of $126k.
ETF Data From Coinglass Validates Claims
We verified the claims on Coinglass using its ETF tracker and found that the claims were indeed true. This month, Bitcoin has seen high inflows in all ETFs. There were at least $500 million worth of inflows in Bitcoin in the last 4 days.
Further, the spot ETFs had seen a massive $55 billion worth of net inflows between January 11 and February 27, which far exceeded the Bitcoin accumulation in the preceding month.
We have presented a graphical representation of the same in the chart below. Data in the chart goes back to March 2023.
Why is Bitcoin accumulation at a high?
Investors in both traditional and crypto markets understand the dominance of Bitcoin. The 47% correction since October 10 ATH has been seen and widely recognized as a buying opportunity.
The retail market got its lesson from the last few cycles and has been accumulating to make a fortune once Bitcoin touches a new ATH.
Further, maximalists have been predicting a new ATH as soon as May 2026 due to a change in Federal Reserve Chairman, leading to expectations of rate cuts.
All of these put together make Bitcoin the most preferred asset in global financial markets.
Mainstream Adoption of Bitcoin as a Reserve Asset
Bitcoin has been slowly getting recognition as a mainstream asset besides stocks, bonds, and Gold due to several reasons.
Gold’s rally in recent times has made it a riskier asset. A sustained period of stability could wipe out major gains in Gold’s price since the last couple of years.
Stocks have also been highly volatile, and expectations of an AI-bubble always loom in the market.
Bonds, too, have been low-yielding, leaving investors with Bitcoin, an asset with a proven record of outperforming every major asset in the world since 2009.
Disclaimer: BFM Times acts as a source of information for knowledge purposes and does not claim to be a financial advisor. Kindly consult your financial advisor before investing.
