Bitcoin ETF Inflows Soar as IBIT Posts Biggest Daily Surge in 2 Weeks

BlackRock’s Bitcoin ETF, IBIT, has posted its largest single-day inflow in over two weeks, attracting over half a billion dollars on May 21 as Bitcoin continues to soar toward new all-time highs. With traders increasingly allocating capital to spot Bitcoin ETFs, market excitement appears to be intensifying amid a broader crypto rally.

According to data from Farside Investors, IBIT brought in a staggering $530.6 million in net inflows on Tuesday—its biggest haul since May 5, when it collected $531.2 million. The fund has now avoided a single outflow since April 9, solidifying its status as a dominant player in the Bitcoin ETF landscape.

Perhaps even more striking is the rate at which IBIT is absorbing Bitcoin. In just one day, the fund acquired 4,931 BTC—more than ten times the 450 BTC that were mined over the same 24-hour period. This level of accumulation reflects strong institutional demand and suggests that many are betting on further price appreciation.

Bitcoin ETF Volume Surge Mirrors BTC Breakout

The explosive inflow was matched by a surge in trading activity. IBIT recorded its busiest trading day since January, according to market tracker Trader T. The ETF Store president, Nate Geraci, noted that the strong volume could indicate even more inflows in the days to come. “Given trading volume today, expect these inflow numbers to increase,” he commented.

In total, the eleven U.S.-listed spot Bitcoin ETF funds recorded $607.1 million in net inflows on May 21. Fidelity’s Wise Origin Bitcoin Fund (FBTC) took the second-highest share with $23.5 million in new capital. 

Bloomberg ETF analyst Eric Balchunas described the scene as a “classic feeding frenzy,” fueled by Bitcoin’s price rally, which pushed the cryptocurrency to nearly $112,000 in early May 22 trading.

Balchunas pointed out that ETF volumes haven’t reached such levels since January, when Bitcoin was hovering near its then all-time high. “Most ETFs are going to see 2x their average flows incoming,” he said, hinting at a potentially sustained wave of investment.

Continued Momentum Amid Rate Speculation?

Industry experts believe the ETF inflow trend may still be in its early stages. Jeff Mei, COO at BTSE, noted that Bitcoin ETFs have already attracted $3.6 billion in net inflows this month alone. He emphasized that investor interest could accelerate further if the Federal Reserve signals upcoming interest rate cuts.

Meanwhile, Jupiter Zheng, partner at HashKey Capital, said Bitcoin’s breakout above $110,000 puts the asset into “uncharted price discovery territory.” 

He warned of heightened volatility ahead but added that ongoing geopolitical uncertainty and economic instability could push more investors toward Bitcoin as a long-term store of value.

As institutional capital continues to pour into spot Bitcoin ETF products, the crypto market may be getting ready for even greater opportunity.