April 30, 2024
Bitcoin ETF

BlackRock’s Bitcoin ETF Halts Inflows, Stirring Concerns

The Bitcoin community is on edge as BlackRock’s iShares Bitcoin Trust (IBIT), one of the fastest-growing spot Bitcoin ETFs in the United States, has ceased recording any inflows since April 24. This marks the first time since its launch that IBIT has experienced consecutive days without new investments. As a result, it has sparked concerns among investors and analysts alike.

Unprecedented Streak Comes to a Halt

BlackRock’s IBIT made headlines with its remarkable 71-day streak of continuous inflows, which abruptly ended on April 24. The sudden halt in inflows has left many questioning the implications for investors and the broader cryptocurrency market. Moreover, considering the ETF’s exponential growth in holdings since its inception has led to rising concerns.

IBIT holdings as of April 29, 2024. Source: BlackRock

Interpreting the Zero Inflow Period

While some observers view IBIT’s inflow halt as a red flag for investors, others suggest that BlackRock’s previous streak of positive flows was the exception rather than the norm.

Thomas Fahrer, co-founder of Apollo, emphasized that zero inflows are not uncommon in the ETF market and are typically driven by fluctuations in supply and demand.

Amidst BlackRock’s zero inflow period, other major ETF issuers like Grayscale Investments continue to experience outflows from spot Bitcoin ETFs. Despite this, the overall trend in total BTC ETF holdings remains positive, indicating continued interest and investment in the cryptocurrency market.

On April 20, the combined outflows from 10 spot Bitcoin ETFs in the US totaled 823 BTC. Source: HODL Capital

As the cryptocurrency landscape continues to evolve, the halt in IBIT’s inflows serves as a reminder of the inherent volatility and uncertainty surrounding Bitcoin ETFs and the broader digital asset market. Investors are advised to proceed with caution and closely monitor developments in this rapidly changing space.

Image from Wallpapers.com

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