BlackRock’s iShares Bitcoin ETF drew an astounding $2.2 billion weekly inflow, outperforming major global funds and underscoring Bitcoin’s surging appeal among institutional investors as the cryptocurrency nears record highs.

BlackRock's iShares Bitcoin Trust Leads Global ETFs

According to Bloomberg's Eric Balchunas, a senior ETF analyst, the iShares Bitcoin Trust (IBIT) by BlackRock was the most liquid ETF in the world. Vanguard S&P 500 ETF (VOO), iShares Core S&P 500 ETF (IVV), and iShares Core US Aggregate Bond ETF (AGG) are among the funds that were demoted.

The weekly inflow into the Fidelity Total Bond ETF (FBND) was $2.253 billion, second only to BlackRock IBIT's $2.287 billion. This is a huge accomplishment for the asset management, especially since the Bitcoin ETF is only nine months old.

Institutional Demand Boosts IBIT’s Trading Volume

The trade volume of IBIT reaches $3.3 billion on Tuesday, reaching levels not seen in six months. There appears to be institutional FOMO at work, given the consistently large inflows. With the US presidential election coming up in just a few days, this makes perfect sense.

Balchunas confirmed in a subsequent X post that US ETFs are currently nearing $100 billion of the all-time yearly flow record. Funds might reach $970 billion, just short of $1 trillion, if the current $4 billion per day momentum continues. The previous record set by US Bitcoin ETFs was $910 billion, and at this level, they can easily surpass it.

Bitcoin Price Recovery Signals Market Optimism

In particular, the recent surge in price to as high as $73,300 indicates that Bitcoin (BTC) has been showing signs of a significant recovery over the previous several days. Bitcoin's price created a "golden cross" on the blockchain, which suggests better times are ahead, according to the charts.

If the 30-day moving average (DMA) rises above the 365-day DMA, it could mean that the trend is going to continue, which is a bullish indicator known as the Golden Cross. For the most part, it portends the possibility of a fresh surge soon, Coingape explains.

Potential Impact of Supply Constraints on Bitcoin's Price

Following a 3.93% drop in the past 24 hours, the current price of Bitcoin, according to data from CoinMarketCap, is $69,911.07. The leading cryptocurrency is still very close to its previous ATH, which was less than five percent away. If BlackRock continues to pour massive amounts of money into Bitcoin ETFs, it might affect the price of the coin in the future.

In particular, if the fund keeps buying Bitcoin, it can cause a shortage in supply, which might drive up the price of Bitcoin in the long term.