BlackRock’s iShares Bitcoin Trust (IBIT) experienced its first day without any new inflows on April 24, marking a significant shift in investor behavior since the ETF’s launch in January. This development occurs amid broader fluctuations within the U.S. Bitcoin ETF market.
A Notable Shift in Inflows
Since its debut on January 11, IBIT has seen a consistent inflow, attracting millions of dollars daily and accumulating nearly $15.5 billion over its first 71 days. However, this streak ended abruptly on April 24 when the fund recorded no new inflows, according to Farside data. This unexpected pause in investment comes as most Bitcoin ETFs in the U.S. also experienced a reduction in inflows.
Comparison with Other Bitcoin ETFs
While BlackRock’s IBIT hit a dry spell, only two out of the eleven U.S.-registered Bitcoin ETFs managed to record any inflows on the same day. The Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB) saw inflows of $5.6 million and $4.2 million, respectively. In contrast, the Grayscale Bitcoin Trust ETF (GBTC) continued its downward trend with $130.4 million in outflows, leading to a net outflow of $120.6 million across the sector on that day.
Broader Market Dynamics
Such days of zero inflows are not unprecedented in the Bitcoin ETF market. Fidelity’s FBTC, for instance, has already experienced three such days in the past two weeks. The U.S. Bitcoin ETF market as a whole has netted $12.3 billion in Bitcoin since January 11. However, significant outflows from GBTC, totaling more than $17 billion, have notably offset these gains.
Regulatory Landscape and Future Prospects
This slowdown in ETF inflows occurs as several Bitcoin ETF operators, including those currently managing Ether ETF applications, face regulatory delays from the SEC. The commission recently postponed decisions on these applications, indicating a need for more time to evaluate the proposals thoroughly.
