Balchunas Identifies Bullish Signal in BlackRock's Bitcoin ETF Flow Data

Bloomberg Intelligence senior ETF analyst Eric Balchunas has identified a bullish signal in the daily flow data for BlackRock's spot Bitcoin ETF (IBIT). According to Balchunas, the fund's flows last week formed a pattern he calls 'Flipping the Bird,' characterized by a taller middle bar flanked by smaller bars on either side. This pattern, he suggests, is typically a positive indicator for the underlying asset.

The 'Flipping the Bird' pattern is a visual formation observed in bar charts of daily fund flows. It indicates a mid-week surge in inflows, surrounded by relatively lower activity. Balchunas emphasized that this pattern has historically preceded upward price action for Bitcoin.

IBIT saw net inflows of approximately $2 billion last week, with U.S. spot Ethereum ETFs attracting around $700 million. These figures mark the largest weekly net inflows for both categories since October of the previous year, signaling renewed institutional interest in regulated crypto exposure.