BlackRock Bitcoin Buying Rebounds as ETF Buyers Sit 22% Down

BlackRock clients turned things around this week by purchasing $273.2 million worth of Bitcoin over a two day span. This followed a brief period of selling earlier in the week where clients unloaded $63.6 million. The strong inflows allowed BlackRock to nearly single handedly drive the entire US spot Bitcoin ETF market, as other funds combined finished the week slightly in the negative.

The iShares Bitcoin Trust pulled in a net $209.6 million across four trading sessions. On one specific day, the fund supplied nearly 80 percent of all incoming capital across the entire ETF sector, marking its largest single day inflow in weeks. These creations and redemptions match on chain tallies, showing real client demand rather than internal bets by the firm.

Despite the fresh buying pressure, the typical spot Bitcoin ETF investor is still feeling some pain. Research data shows that the average buyer is down about 22 percent since launch, with an aggregate cost basis sitting far above current market prices. Aggregate unrealized losses have piled up significantly compared to the record highs seen when Bitcoin hit its all time peak.

BlackRock holds the lion share of assets across all US spot Bitcoin funds and continues to push institutional allocation guidance of one to two percent for portfolios. While June brought record outflows for the sector, July has started to claw back some of those losses. Traders will watch closely to see if these renewed inflows can hold up and help push average investor portfolios back into positive territory.