While most of the crypto market cooled this week, BlackRock’s iShares Bitcoin Trust (IBIT) is quietly proving its staying power. The fund took in another $45 million in new money on Monday, marking 12 straight days of inflows — even as Bitcoin slipped below $112,000 for the first time in three weeks.
The steady appetite for IBIT stands in sharp contrast to the broader pullback in digital assets. Bitcoin has lost nearly 8% over the past week, dragged down by renewed trade tensions between the U.S. and China and a general wave of risk aversion across global markets. Still, large investors appear unfazed.
“BlackRock’s ETF is showing that institutional conviction is deeper than the day-to-day noise,” said Rachel Tannen, a strategist at Meridian Analytics. “When markets get choppy, smart money looks at it as a buying opportunity, not a reason to run.”
Institutions Stay the Course
Since early October, IBIT has attracted more than $600 million in new inflows, according to data from Farside Investors, outpacing rivals like Fidelity’s FBTC and Ark 21Shares’ ARKB, which both saw mild outflows this week. The trend underscores a shift in how institutions are treating Bitcoin — not as a speculative play, but as a strategic long-term asset.
“Most of these inflows are coming from allocators building positions slowly,” said Adrian Cole, head of trading at BlockEdge Capital. “They’re not trying to time the market. They’re using volatility to average in.”
On-chain data supports that narrative. Wallets associated with ETF custodians have increased holdings by 2.8% month-over-month, according to CryptoQuant, suggesting that institutional accumulation continues even as retail traders pull back.
Retail Cools, Institutions Accumulate
The Crypto Fear & Greed Index dropped from 74 (Greed) to 58 (Neutral), showing that smaller investors are becoming more cautious after Bitcoin’s surge past $120,000 earlier this month. Funding rates on futures exchanges also turned slightly negative, signaling that leveraged long positions are being unwound.
“It’s not panic,” Cole noted. “It’s a reset. And resets are healthy.”
A Shift Beneath the Surface
Analysts see Bitcoin trading between $108,000 and $115,000 in the near term, but beneath the surface, the market looks steadier than the price suggests. With ETFs like IBIT drawing consistent inflows, Bitcoin’s base demand appears more resilient than in past corrections.
“In 2021, every dip triggered a stampede for the exits,” said Tannen. “In 2025, it’s prompting strategic accumulation. That’s a very different market.”
Leave a comment