Adam Back Forecasts Influx of Trillions into Bitcoin ETFsBlackRock to Spearhead the Movement
Adam Back, CEO of Blockstream, has made a bold prediction that $5 trillion will soon flow into Bitcoin ETFs, and industry leader BlackRock is expected to lead the way. BlackRock’s IBIT ETF has already seen a significant inflow of $205.6 million, contributing to its total net inflows of $19.9 billion. In contrast, Grayscale’s GBTC ETF experienced an outflow of $54.3 million, bringing its total net outflows to $18.9 billion. Despite this, the overall inflows into Bitcoin ETFs now amount to $17.7 billion.
On July 29, Bitcoin ETFs experienced a notable inflow of $124.1 million, taking advantage of Bitcoin’s price dip to $66,000. BlackRock’s IBIT ETF was particularly successful, with a substantial $205.6 million inflow. This marked the largest inflow since July 22, bringing IBIT’s total net inflows to $19.9 billion.
Looking ahead, it is predicted that Bitcoin ETF buyers will see a significant boost as a $5 trillion model portfolio is expected to be invested in spot Bitcoin ETFs later this year. Key players like BlackRock are anticipated to lead this charge, causing a ripple effect across the market.
Adam Back highlights the dominance of institutional investors with substantial buying power in the market. These Bitcoin ETF whales are likely to use a significant portion of their $5 trillion to strengthen their Bitcoin positions. BlackRock, with over $10 trillion in Assets Under Management (AUM), is one of the asset managers expected to spearhead this move. While sectors like healthcare, technology, and AI still attract investment, digital assets like Bitcoin are gaining increasing interest.
However, BlackRock’s CEO, Larry Fink, recently referred to Bitcoin as a “portfolio diversifier” and likened it to gold. This perspective is supported by BlackRock’s recent investment of $525 million in Bitcoin ETFs.
Market watchers anticipate stakeholders consolidating their positions in preparation for an expected price increase. PlanB, the creator of the bitcoin stock-to-flow (S2F) model, suggests that Bitcoin miner revenue has already reached its lowest point after the Bitcoin Halving 2024 event. Consequently, he does not expect further miner capitulation, which could reduce selling pressure on Bitcoin prices.
PlanB also predicts that Bitcoin’s price will double by the end of 2024, aiming for $150,000. However, with the upcoming U.S. elections, he foresees increased volatility in Bitcoin prices.
Despite the recent drop in Bitcoin’s price to $66,647 after nearly reaching $70,000, analysts view this volatility as normal and believe that a bullish run is imminent.