BlackRock's Bitcoin ETF Sees $0 Inflows After 71 Days: A Shift in Investor Sentiment?

BlackRock's iShares Bitcoin Trust (IBIT) saw its first day of $0 inflows after 71 consecutive days, coinciding with a Bitcoin price drop.
BlackRock's Bitcoin ETF Sees $0 Inflows After 71 Days: A Shift in Investor Sentiment?

Key Insights

  • After 71 consecutive days of inflows, BlackRock's iShares Bitcoin Trust (IBIT) recorded its first day with $0 inflows.

  • The $0 inflow day for IBIT happened alongside a Bitcoin price drop from over $66,800 to $64,000.

  • Most other Bitcoin ETFs also experienced low inflows on the same day, with only Fidelity and Ark-21 Shares seeing minor inflows.

  • Grayscale's Bitcoin Trust (GBTC) experienced outflows of $130.4 million on the same day.

  • Overall, the market expects the launch of Bitcoin ETFs in Hong Kong, which could do something to save future inflows.

The 11 spot Bitcoin ETFs have performed very well since their launch in January 2024.

Granted there have been some bad days, but these ETFs have pulled upwards of $10 billion worth of fresh capital into the Bitcoin ecosystem.

Among these, some of the best performers include Fidelity, Ark-21 Shares and Blackrock's ETFs.

However, the recent developments in the ETF market have started to raise eyebrows.

It turns out that BlackRock’s iShares Bitcoin Trust (IBIT) recently experienced its first day of ZERO inflows.

That is, not even a single dollar flowed into the IBIT for the first time in 71 days.

Is this cause for alarm? Is this “nothing to worry about”, or should investors be on guard for what might come next?

Let’s explore.

IBIT’s Remarkable Journey

Ever since its launch on 11 January, Blackrock's IBIT has been at the forefront of ETF inflows, bringing in millions of dollars on a daily basis.

In fact, in just 71 days since launch, the IBIT has pulled in around $15.478 billion worth of inflows, with the maximum being a single-day inflow of $849 billion—Nearly twice that of Fidelity's FBTC, which brought a single-day inflow of $473 million.

However, things have become very confusing for investors, because according to data from Farside, April 24 saw the IBIT record $0 inflows for the first time.

<div class="paragraphs"><p>$0 Inflows</p></div>

$0 Inflows

Why is this a major cause of concern for investors?

<div class="paragraphs"><p>The total liquidations on Bitcoin</p></div>

The total liquidations on Bitcoin

This $0 inflow happened to coincide with Bitcoin’s decline from over $66,800 to around $64,000, which kicked thousands of leveraged traders off the market and caused the liquidations of around $38 million worth of long positions.

Other ETFs Were No Better

Data from Farside also shows that the IBIT’s $0 inflow was not an isolated incident.

The snapshot above shows that only two of the 11 registered ETFs saw inflows on 24 January.

Even then, these inflows were from Fidelity and Ark-21 Shares, with $5.6 million and $4.2 million respectively.

Others had $0 inflows, with Grayscale’s ETF seeing $130.4 million worth of outflows, and turning Wednesday generally negative, with -$120 million in total outflows.

<div class="paragraphs"><p>Cause for alarm?</p></div>

Cause for alarm?

Overall, the ETF market still holds a total of $12.3 billion in Bitcoin, with Grayscale's GBTC offloading millions of dollars worth of Bitcoin every day, and nearly 20 billion to date.

Overall, the market continues to expect the launch of the bitcoin ETFs in Hong Kong on 30 April.

While it is fair that the Hong Kong ETF market is generally smaller than the US, it remains an untapped gold mine, and it might be interesting to see what happens.

Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.

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