BlackRock Buys $1B of Bitcoin and Ether ETFs Amid 5% Dip
BlackRock’s spot Bitcoin ETF and Ether ETF bought over $1 billion of assets during a 5% price dip. The purchases occurred as BTC/USD briefly fell to about $117,200, nearly filling a CME futures gap at $17,200. Liquidations topped $900 million within 24 hours, but institutional demand remained firm. Data show the iShares Bitcoin Trust added $500 million in BTC, while its Ether ETF matched that in ETH. This “buy the dip” by institutional investors underlines ongoing demand. Combined ETF trade volumes reached $11.5 billion, rivaling Apple stock. Traders from BitBull and analyst Eric Balchunas highlighted this strategy and noted key support levels at the filled CME gap and the 4-hour 50-EMA. Their views imply a likely rally once $120,000 offers support. This market correction may mark a buying opportunity. Bitcoin ETF and Ether ETF flows could bolster liquidity and fuel a sustained uptrend.
Bullish
BlackRock’s large purchases during a 5% correction underscore robust institutional demand. Historically, similar “buy the dip” strategies by ETF investors have provided immediate price support and paved the way for subsequent rallies. The near-complete fill of the CME futures gap at $17,200 (around $117,200 BTC) highlights a key support level, reducing downside risk. In the short term, ETF inflows should stabilize volatility and limit sell-offs. Over the long term, sustained institutional involvement via Bitcoin ETF and Ether ETF products may drive consistent capital inflows, enhancing liquidity and market confidence. Combined ETF trade volumes comparable to leading equities indicate growing mainstream adoption. Consequently, the news favors a bullish outlook, positioning crypto markets for a potential uptrend if ETF demand continues.