While retail investors were heading for the exits, BlackRock was walking in the front door.
The asset management giant’s iShares Bitcoin Trust, better known as IBIT, recorded approximately $47 million in net inflows on June 4-5, breaking a 13-day streak of outflows. In practical terms, that means investors poured fresh capital into the ETF, which then purchased Bitcoin to back newly created shares.
What the ETF mechanics actually mean
When money flows into IBIT, BlackRock doesn’t just sit on the cash. The fund is required to purchase actual Bitcoin to back each new share issued. So a $47 million inflow translates directly into $47 million worth of Bitcoin being acquired on behalf of shareholders.
The reverse is also true. During that painful 13-day outflow streak, Bitcoin was being sold to meet redemptions.
