BlackRock iShares Bitcoin Trust (IBIT), which has been attracting significant daily investments since its launch in January, saw its first day of $0 inflows on April 24. This marks a shift from its previous streak of continuous inflows, which had totaled approximately $15.5 billion in just 71 days. Similarly, most other Bitcoin ETF participants also experienced a dry spell on the same day, with only Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) seeing inflows of $5.6 million and $4.2 million, respectively.
On the other hand, the Grayscale Bitcoin Trust ETF (GBTC) continued to suffer losses, reporting $130.4 million in outflows on April 24. Overall, the net outflows for spot Bitcoin ETFs on that day amounted to $120.6 million. Despite this setback, the Bitcoin ETF market in the U.S. has collected a net of $12.3 billion in Bitcoin to date, with outflows from GBTC surpassing $17 billion since Jan. 11.
Eric Balchunas, Bloomberg Intelligence ETF analyst, praised the 71-day streak of continuous inflows to the IBIT ETF, placing BlackRock’s Bitcoin fund among the top ten funds of all time by various metrics. However, he emphasized that there is still a long way to go to reach the top rank, citing JPMorgan’s Equity Premium Income ETF with the longest inflow streak lasting 160 days.
The success of the IBIT ETF can be attributed to institutions gradually increasing their exposure to Bitcoin as part of their investment strategies. While BlackRock’s tokenized fund, BUIDL, which debuted on the Ethereum blockchain in March, has not seen the same level of success as IBIT, it remains a promising venture. Despite attracting only a few investors initially, BUIDL has shown potential for growth, with on-chain data revealing the distribution of assets among various wallets.
Overall, the fluctuations in Bitcoin ETF inflows and outflows underscore the dynamic nature of the cryptocurrency market and the shifting preferences of institutional investors. BlackRock’s IBIT ETF, despite experiencing a temporary halt in inflows, remains a significant player in the evolving landscape of digital asset investments.
