BlackRock’s Bitcoin ETF Hits Unexpected Milestone as Daily Inflows Drop to Zero
In Brief
Blackrock Bitcoin ETF daily inflows dropped to zero for the first time since its lauch.
BlackRock’s Bitcoin ETF has grabbed attention as its daily inflows hit an unexpected milestone, dropping to $0 for the first time since its launch. According to a London-based investment management company, Farside Investors, the inflow streak of the BlackRock iShares Bitcoin Trust (IBIT) came to a halt on April 24, 2024, with the ETF recording no inflows for the day.
Since its inception, IBIT, launched on January 11, 2024, and issued by Blackrock, has consistently drawn significant investments daily, amassing nearly $15.3 billion in just 71 days. However, investor sentiment has shifted, resulting in a complete cessation of daily inflows, potentially signaling a significant shift in the crypto ETF market trend.
This no-inflow situation for BlackRock’s Bitcoin ETF, though unprecedented, echoes broader trends in the landscape. For instance, Fidelity’s FBTC experienced three days of no inflows over the past 12 days, from April 12 to April 24. Interestingly, just on April 10, 2024, according to Nasdaq, Fidelity FBTC became the third BTC ETF to have reached 150,000 BTC in AUM. Additionally, Grayscale recently transferred 2,373 BTC valued at $156 million to Coinbase, with its net inflow of $12.5 billion into the US BTC ETF market being offset by outflows surpassing $17 billion since mid-January.
Furthermore, delays in approval decisions for several Ether (ETH) ETF applications by the US SEC have heightened uncertainty in the cryptocurrency ETF market. The SEC‘s extension of the decision timeline for potentially converting Grayscale‘s ETH Trust into a spot ETH exchange-traded product on NYSE Arca, now due on June 23, further exacerbates this uncertainty. Hence, BlackRock’s IBIT experiencing a day without inflows aligns with regulatory uncertainties and obstacles, illustrating the complexity of cryptocurrency investments.
On April 24, Eric Balchunas, BI ETF analyst, lauded the 71-day streak of uninterrupted inflows to the IBIT ETF.
He compared the fund’s performance to that of the U.S. Global Jets ETF (JETS), Vanguard’s bond market ETF, and developed-markets ETF, positioning BlackRock’s Bitcoin ETF among the top ten funds of all time by another measure. However, Balchunas noted that “a lot of mountains left to climb” still exist to achieve the top rank.
FYI – BlackRock filed the IBIT with the SEC on June 15, 2023, and remarkably obtained approval within a mere seven months. Subsequently, on January 11, 2024, the U.S. SEC granted approval to IBIT along with ten other spot Bitcoin ETFs.
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About The Author
Zhauhazyn is a copywriter and sociology major. Fascinated by the intricate dynamics of Science and Technology Studies, she delves deep into the realm of Web3 with a fervent passion for blockchain.
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Zhauhazyn is a copywriter and sociology major. Fascinated by the intricate dynamics of Science and Technology Studies, she delves deep into the realm of Web3 with a fervent passion for blockchain.
