BlackRock’s IBIT ETF experiences first day without inflows since US Bitcoin ETF launch

BlackRock iShares Bitcoin Trust (IBIT) Sees First Day of $0 Inflows Since Launch of Bitcoin ETFs in the U.S.

BlackRock iShares Bitcoin Trust (IBIT) has experienced its first day of $0 inflows since the launch of Bitcoin ETFs in the United States in January. The fund, which has been attracting millions of dollars in daily investments since its inception on Jan 11, saw a total of approximately $15.5 billion in inflows in just 71 days. However, on April 24, IBIT recorded $0 inflows, marking a significant shift in investor sentiment.

Bitcoin ETF Market Update

On April 24, most Bitcoin ETF participants in the U.S. experienced a dry spell in terms of inflows. Out of the 11 Bitcoin ETFs registered in the country, only Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) saw inflows of $5.6 million and $4.2 million, respectively. Meanwhile, the Grayscale Bitcoin Trust ETF (GBTC) reported $130.4 million in outflows on the same day, leading to a net outflow of $120.6 million for spot Bitcoin ETFs.

Despite the recent lack of inflows, IBIT has been a standout performer in the Bitcoin ETF market, ranking among the top funds of all time by various metrics. The fund’s success can be attributed to institutions gradually increasing their exposure to Bitcoin, viewing it as a complementary asset in their portfolios.

Analyst’s Perspective

Eric Balchunas, Bloomberg Intelligence ETF analyst, praised the 71-day streak of continuous inflows to the IBIT ETF, comparing it to other successful funds in the market. While IBIT has achieved significant milestones, Balchunas noted that there is still room for growth and improvement to reach the top rank in the ETF industry.

Despite the success of IBIT, not all of BlackRock’s cryptocurrency efforts have seen immediate success. The tokenized fund BUIDL, launched on the Ethereum blockchain, has attracted only a few investors so far, despite a 200% increase in value in a short period.

Overall, the Bitcoin ETF market in the U.S. continues to evolve, with investors closely monitoring the performance of various funds and adjusting their strategies accordingly.

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