Bitcoin ETFs Buy $84M Worth of BTC on Thursday, BlackRock Stands Out as Best Performer

Bitcoin exchange-traded funds in the US, a total of 11 of them, collectively purchased Bitcoin worth more than $84 million on Thursday.

Bitcoin exchange-traded funds (ETFs) in the United States purchased BTC to the tune of $84 million on Thursday, with a total of 11 ETFs now available to retail and institutional investors, offering direct exposure to the world’s largest cryptocurrency.

Following the approval of these ETFs by the Securities and Exchange Commission in January, these funds have been ramping up their Bitcoin acquisition efforts. Several rounds of fresh purchases have been witnessed in the ETF industry. These ETFs offer genuine Bitcoin to traders and professional investors, and the continuous flow of funds into these ETFs highlights the sustained institutional interest in the crypto space.

The more these ETFs allocate to Bitcoin, the greater the liquidity when users trade the flagship cryptocurrency. Besides trading, market participants may opt to hold the token for an extended period, which also necessitates continuous liquidity for the funds to fulfill withdrawal requests.

BlackRock emerges as top performer in fresh purchases

In this context, one crucial player is distinguishing itself as a standout liquidity provider (LP). BlackRock, the world’s largest asset manager, with $10 trillion under management across various asset classes, has been splurging on fresh Bitcoin purchases.

The asset manager has spent over $1 billion on new BTC purchases in July alone, outperforming other ETF issuers, including Grayscale, ARK, and Fidelity, in terms of recent acquisitions.

BlackRock’s role in driving the buying momentum across Bitcoin ETFs is generating enthusiasm and optimism within the investment landscape regarding the long-term growth of the spot BTC ETF industry. But what exactly are spot Bitcoin ETFs?

What are spot Bitcoin ETFs?

Spot Bitcoin ETFs enable an individual or institutional investor to hold actual Bitcoin and not any derivative of the asset. In contrast, futures-based ETFs allow market participants to hold futures contracts pegged to the price of Bitcoin. By purchasing a unit from a spot Bitcoin ETF, traders contribute to the overall market capitalization of the underlying asset, which is Bitcoin in this case.

Where does the price of Bitcoin stand today?

The price of the flagship cryptocurrency kicked off Friday’s trading session with a flattish note, showing no significant change. Bitcoin was trading around the $65,000 price point as traders prepared to navigate the day's events. No major economic news is expected, which could lead to the market either taking a breather or traders delving deeper into technical analysis.

The above is the detailed content of Bitcoin ETFs Buy $84M Worth of BTC on Thursday, BlackRock Stands Out as Best Performer. For more information, please follow other related articles on the PHP Chinese website!