BlackRock’s spot Bitcoin ETF, the iShares Bitcoin Trust (IBIT), recorded zero daily inflows for the first time on April 24, ending 71 days of constant inflows since its introduction in January. What does the future hold for the BlackRock Bitcoin ETF?
The end of a series of record inflows for BlackRock’s IBIT
The U.S. Bitcoin ETF market has a major turning point on April 24 with no entries for the flagship ETF of BlackRock’s flagship ETF, the iShares Bitcoin Trust (IBIT).
Since its launch on January 11, IBIT had attracted daily investments of several million dollars, accumulating an impressive total of $15.5 billion in just 71 days. However, this sequence of steady inflows came to an end on April 24, marking a significant milestone for the ETF from BlackRock.
This interruption in the sequence of IBIT is not, however, an isolated case in the Bitcoin ETF market. Among the 11 Bitcoin ETFs registered in the United States, only the Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) recorded positive entries on April 24 with $5.6 million and $4.2 million respectively.
In addition, Grayscale Bitcoin Trust ETF (GBTC) continued to experience significant outflows, recording $130.4 million in withdrawals on the same day. As a result, the Bitcoin spot ETF market posted a net outflow of $120.6 million on April 24.
The evolving Bitcoin ETF market
Although the lack of inflows is a first for BlackRock’s IBIT, this phenomenon is not unusual among other players in the Bitcoin ETF market. The Fidelity FBTC, for example, has already recorded three days of zero entries in the last two weeks.
Despite these fluctuations, the U.S. Bitcoin ETF market has accumulated a net $12.3 billion in Bitcoin since the beginning of the year. However, major outflows from the GBTC which exceeded $17 billion on January 11, partially offset the inflows recorded by the nine other Bitcoin ETFs.
At the same time, some players in the Bitcoin ETF market are also looking to launch similar products for Ether (ETH). However, the Securities and Exchange Commission (SEC) recently delayed approval decisions of several of these applications, such as Grayscale to convert its ETH Trust into a spot Ether ETF on NYSE Arca postponed by 60 days until June 23.
Lack of entries for BlackRock’s Bitcoin ETF on April 24 marks a turning point in the dynamics of the cryptocurrency-linked ETF market in the USA. While this is not alarming in itself, it does raise questions about the evolution of investor appetite for these products. The coming months will be crucial in assessing the sustainability and growth of this segment, especially as market players seek to diversify their offering with Ether ETFs.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.
