BlackRock's clients shifted gears, snapping up $273.2 million in Bitcoin over two days after earlier shedding $63.6 million this week. The detailed figures mirrored BlackRock’s official fund creations down to the last dollar.
This flurry of buying nearly equaled the entire US spot Bitcoin ETF market activity during that period. Yet, the average ETF investor is still sitting on a 22% loss since these funds launched.
The iShares Bitcoin Trust (IBIT) accounted for $209.6 million in net inflows from July 27 to July 30, dominating the US ETF market. In fact, the other 12 funds combined were slightly negative, highlighting IBIT's exceptional pull.
On July 30 alone, IBIT took in nearly 79% of all ETF inflows that day with $183.38 million, marking its biggest single-day intake since early July. On-chain data from Arkham confirms these moves precisely, noting net redemptions of $63.6 million followed by creations of $273.2 million matching BlackRock’s totals.
Despite the recent buying spree, Hedgeye’s analysis of Bloomberg Intelligence data reveals that typical US Bitcoin ETF investors remain deep underwater. The average cost basis for these buyers is around $82,249 per Bitcoin compared to the current price near $64,114, representing a 22% loss.
As of July 31, Bitcoin traded close to $62,907, pushing the unrealized losses higher to nearly 24%. In dollar terms, the unrealized losses for ETF holders peaked at $16.33 billion on July 20, a stark contrast to an $86.32 billion gain recorded last October when Bitcoin reached its all-time high near $126,080.
The ongoing new fund creations by BlackRock reflect genuine client demand rather than speculative bets by the firm itself. This dynamic mirrors broader market trends where institutional appetite waxes and wanes alongside Bitcoin’s price fluctuations.
This is informational content and should not be considered financial advice.
