BlackRock IBIT ETF Experiences First Day Without Inflows Since US Bitcoin ETF Launch
BlackRock’s iShares Bitcoin Trust (IBIT) experienced its first day without any inflows since the launch of Bitcoin ETFs in the United States earlier this year. Since January 11, IBIT has consistently attracted millions of dollars in daily investments, accumulating a total of approximately $15.5 billion in just 71 days. However, this streak came to an end on April 24 when there were no new inflows recorded.
Other Bitcoin ETFs also faced a similar dry spell. Out of the 11 registered Bitcoin ETFs in the US, only Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) received inflows of $5.6 million and $4.2 million respectively.
Meanwhile, the Grayscale Bitcoin Trust ETF (GBTC) continued to experience losses. On April 24, GBTC reported $130.4 million in outflows, resulting in a net outflow of $120.6 million for spot Bitcoin ETFs on that day.
Although IBIT has not encountered a lack of inflows before, other ETFs have experienced similar situations. Fidelity’s FBTC, for instance, had three days with no inflows in the past two weeks.
So far, the Bitcoin ETF market in the US has gathered a net of $12.3 billion in Bitcoin. However, the outflows from GBTC have offset some of the inflows from the other ten Bitcoin ETFs, with GBTC experiencing outflows exceeding $17 billion since January 11.
Earlier, on April 24, Eric Balchunas, an ETF analyst at Bloomberg Intelligence, praised the 71-day streak of continuous inflows for the IBIT ETF. This achievement has placed BlackRock’s Bitcoin ETF among the top ten funds of all time by yet another measure. However, Balchunas noted that there is still a long way to go to reach the top rank.
BlackRock’s success with the ETF can be attributed to institutions gradually increasing their exposure to Bitcoin. Balchunas described Bitcoin as “hot sauce” on top of larger portfolios for these companies, rather than a significant part of their strategies.
However, not all of BlackRock’s cryptocurrency endeavors have immediately seen success. The tokenized fund, BUIDL, launched on the Ethereum blockchain on March 20, has attracted only a few investors so far. Despite a 200% increase in value in just a few weeks, on-chain data shows that the majority of the fund’s assets are held in 11 wallets.
In conclusion, while BlackRock’s Bitcoin ETF has enjoyed significant success, there are still challenges ahead. The market for Bitcoin ETFs in the US continues to evolve, and the competition among different funds remains fierce.
