Bitcoin ETF: Why BlackRock is buying 11,500 BTC

The first few days following the adoption of the Bitcoin ETF were disappointing. Instead of the hoped-for "God Candle," i.e., the immediate rise to $100,000, Bitcoin (BTC) scraped only $49,000. This was followed by what can be described as a "sell the news event." Bitcoin is currently trading at $42,665 - and thus is in a sideways trend.

What happens next?

So were the Bitcoin Spot ETFs from BlackRock, Fidelity, Bitwise and Co. a non-event? Not at all. The extent to which the adoption of the new index funds will affect Bitcoin depends on inflows in the coming weeks. After all, investors traded $4.4 billion worth of ETF-shares. The more money that flows into the ETFs, the better for BTC. After all, the sponsors on the other side have to charge a lot of Bitcoin to properly reflect the price with their product.

And so it comes as no surprise that just a few days after the historic approval of all 11 Bitcoin-based exchange traded funds applied for, huge movements in BTC have been recorded. BlackRock sole possession almost 11,500 BTC already.

By comparison, miners produce an average of 900 BTC per day. So the world's largest asset manager just pulled all new offerings off the market for 13 days.

However, we will not know until Tuesday evening German time whether Wall Street's run on the new financial products will continue. After all, US markets are closed today, Monday, January 15, due to the Martin Luther King holiday.