In the rapidly evolving cryptocurrency landscape, the spot Bitcoin ETF (Exchange Traded Fund) in the United States is now creating concern among the community. However, the reason behind this concern is the continuous zero inflow into the biggest Bitcoin ETF by BlackRock’s iShares Bitcoin Trust (IBIT) in the last four days.
BlackRock’s IBIT zero inflow continues
BlackRock’s IBIT is the fastest-growing spot Bitcoin ETF in the United States; this is the first time it has not experienced any inflow since its launch. According to official statistics of IBIT, BlackRock’s IBIT currently holds the same 274,462 BTC for the past four days.
BlackRock’s Bitcoin ETF has halted its impressive 71-day streak of inflows, sparking discussions among investors. The fund, which initially traded with 2,621 BTC on January 11, 2024, has seen a massive increase in holdings by up to 10,378%.
This pause in inflows has started debates among crypto observers. Some see it as a concerning signal for investors, while others argue that BlackRock’s streak of positive flows was the exception rather than the norm.
Explaining the mechanics behind ETF inflows, Apollo co-founder Thomas Fahrer highlighted that such fluctuations are normal. He also highlights that for new Bitcoins to enter or exit an ETF, there must be a notable inequality between supply and demand, prompting market makers to adjust creation units accordingly. Fahrer highlighted that BlackRock’s consistent inflow trend had been exceptional, deviating from the typical behavior of most ETFs.
Spot Bitcoin ETF performance in the United States
Meanwhile, amidst BlackRock’s zero inflow period, other ETF issuers, notably Grayscale Investments, continue to experience outflows from spot Bitcoin ETFs. Data from HODL Capital indicates that on April 20, 2024, alone, total daily outflows from 10 spot Bitcoin ETFs in the United States amounted to 823 BTC. The Grayscale Bitcoin Trust ETF (GBTC), which held 297,117 BTC on that day, has seen a decrease of approximately 52% from its initial holdings on January 11, 2024.
Comparing holdings, BlackRock’s IBIT currently holds 274,462 BTC, just around 8% less than Grayscale’s GBTC. Despite the slowdown in spot Bitcoin ETF inflows in the United States, the overall holdings of BTC ETFs have increased by approximately 33.1% since January 11, 2024, reaching a total of 831,424 BTC as of April 29, 2024.
In the rapidly evolving cryptocurrency landscape, the spot Bitcoin ETF (Exchange Traded Fund) in the United States is now creating concern among the community. However, the reason behind this concern is the continuous zero inflow into the biggest Bitcoin ETF by BlackRock’s iShares Bitcoin Trust (IBIT) in the last four days. BlackRock’s IBIT zero inflow […] Read MoreNews, Bitcoin, BlackRock, ETF
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