Thomas Daniels
The BlackRock iShares Bitcoin Trust (IBIT), a pioneering figure in the U.S. Bitcoin ETF landscape, has recorded its inaugural day without new inflows since the advent of these funds in the United States this past January. Despite a robust beginning with continuous daily inflows amassing approximately $15.5 billion within the first 71 days, April 24 marked a notable shift as IBIT logged zero new investments.
This stagnation in inflows was not isolated to BlackRock. The U.S. Bitcoin ETF market, comprising 11 registered funds, saw minimal activity with only the Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) registering inflows of $5.6 million and $4.2 million, respectively. Conversely, the Grayscale Bitcoin Trust ETF (GBTC) reported significant outflows, losing $130.4 million on the same day, netting a total of $120.6 million in outflows across spot Bitcoin ETFs.
Despite IBIT’s previous success, occasional days without new inflows are not uncommon in the ETF sector. For instance, Fidelity’s FBTC experienced three such days within the last fortnight alone.
Since January 11, the cumulative net inflow into Bitcoin ETFs in the U.S. reached $12.3 billion. However, the substantial $17 billion outflows from GBTC somewhat offset the gains made by other funds.
On a more positive note, Bloomberg Intelligence ETF analyst Eric Balchunas highlighted the significant streak of continuous inflows IBIT enjoyed since its inception, surpassing records set by established funds like the Global Jets ETF and various Vanguard ETFs. Despite the recent halt, Balchunas remains optimistic about IBIT’s potential, though he acknowledges the challenges ahead in climbing the ranks of top-performing funds.
BlackRock’s venture into the cryptocurrency space extends beyond IBIT. Its tokenized fund, BUIDL, introduced on the Ethereum blockchain in late March, although growing rapidly by 200% in a matter of weeks, shows a concentrated investment spread across just 11 wallets, indicating a tepid reception from the broader investment community.
This recent stagnation in inflows across various cryptocurrency funds, including BlackRock’s, underscores the fluctuating dynamics of the cryptocurrency investment landscape, hinting at cautious investor sentiment amid broader market conditions.
