BlackRock’s IBIT Targets 28% Price Increase as ETF Inflows Rebound
BlackRock's iShares Bitcoin Trust (IBIT) has gained attention due to significant inflows, with assets under management (AUM) exceeding $70 billion. The share price increased by 13% over the past month, leading traders to anticipate a potential rise of 28% to $77.
Key Developments
- A trader purchased 3,000 contracts of IBIT's $77 strike call option expiring on June 27 for a total premium of $39,000.
- The purchase indicates expectations for IBIT's price to exceed $77, which is a 28% increase from the recent closing price of $60.40.
- Market analyst EndGame Macro views this trade as a strong bet, possibly influenced by anticipated major market catalysts.
- IBIT is now among the top 25 largest ETFs, achieving this status in just 1.4 years since its launch.
ETF Inflows and Market Activity
- On Tuesday, spot Bitcoin ETFs saw a resurgence with net inflows of $375 million, primarily driven by Ark Invest’s ARKB and Fidelity’s FBTC.
- Trump's media company filed to launch a Truth Social Bitcoin ETF aimed at tracking spot Bitcoin.
- Bloomberg’s Eric Balchunas suggests that new entrants may struggle against established firms like BlackRock and Fidelity.