Lark Davis, author of the Wealth Management newsletter, said BlackRock's recent large purchases of Bitcoin for its Bitcoin exchange-traded fund (ETF) signal that investors are feeling optimistic about increases in cryptocurrency prices. Davis shared his statement in an Aug. 27 post on X.
"BlackRock's Bitcoin ETF bought over $500M of $BTC on behalf of their clients last week," said Davis. "And they bought $224M worth of $BTC yesterday. The Bitcoin bulls are back!"
According to Yahoo Finance, the U.S. Securities and Exchange Commission's (SEC) approval of eleven spot Bitcoin ETFs in January could be the "most transformative" point in the history of Bitcoin. After nine months of trading, Bitcoin ETFs have surpassed the previous record of $5 billion in inflows for ETFs, reaching $17.5 million in net inflows. Bitcoin ETFs also reached a new record for the number of institutional investors in ETFs. The previous record was 374 institutional holders in the Invesco QQQ Trust ETF after two quarters into its lifecycle, while in the same time period, the top ten Bitcoin ETFs attracted more than 1,100 institutional investors.
Bitcoin reached all-time highs after leading institutions such as BlackRock and Fidelity Investments launched their Bitcoin ETFs, Yahoo Finance reported. On March 5, when Bitcoin reached $70,000, BlackRock's Bitcoin ETF saw a record inflow of $788.3 million in one day. Bloomberg's senior ETF analyst Eric Balchunas said the March 5 inflows "are bananas numbers for ETFs under 2 months old."
Larry Fink, CEO of BlackRock, which is the largest asset manager in the world, said Bitcoin ETFs are "step one in the technological revolution in the financial markets," CNBC reported. "Step two is going to be the tokenization of every financial asset," Fink said. He added that blockchain technology can upgrade existing financial systems, eventually eliminating "all corruption," because transactions will be recorded instantly on the blockchain ledger.
In addition to authoring the Wealth Management newsletter, Davis runs a YouTube channel where he shares market insights with his 580,000 subscribers, according to his profile.