Despite the record-breaking continuous inflow of funds into the iShares Bitcoin Trust (IBIT) ETF issued by BlackRock, the streak came to an end on Wednesday. However, Bloomberg analysts still highly praise the IBIT for its year-to-date inflow volume, which ranks second among all registered funds in the United States.
Summary:
BlackRock’s Bitcoin spot ETF “IBIT” had a continuous net inflow of funds for 70 days, entering the top ten historical list.
Background:
Is the Bitcoin spot ETF craze fading? Net inflows are no longer the norm and occasionally turn negative. How do Bloomberg analysts view this?
Contents:
BlackRock’s IBIT ends its 71-day streak of net fund inflows.
IBIT ranks second in terms of fund inflows among all registered funds in the United States this year.
Bloomberg: Decrease in demand for Bitcoin spot ETFs.
Bitcoin falls below $63,000.
The iShares Bitcoin Trust (IBIT), an ETF issued by BlackRock, the world’s largest asset management company, achieved a record of 70 consecutive days of net fund inflows on April 22nd, successfully entering the top ten historical list for the longest continuous fund inflows into an ETF. However, according to data released by Farside Investors, this record was eventually broken on the 24th, with a new high of 71 consecutive days of net fund inflows.
On that day, out of the 10 spot ETFs other than Grayscale GBTC, as many as 7 followed in the footsteps of IBIT. Only Fidelity’s FBTC and ARK/21Shares’ Bitcoin ARKB had net inflows of $5.6 million and $4.2 million respectively, while GBTC had outflows exceeding $130 million. This resulted in a net outflow of over $120 million for the overall spot ETF on that day, marking the highest outflow record since April 17th.
However, despite the rare absence of fund inflows into IBIT on Wednesday and Thursday, Bloomberg senior ETF analyst Eric Balchunas presented a chart on the 25th, indicating that IBIT has still attracted over $15 billion in funds.
At the same time, he also praised the remarkable performance of IBIT, ranking it second in terms of funds attracted among all registered funds in the United States.
Further reading:
Is the Bitcoin spot ETF craze fading? Net inflows are no longer the norm and occasionally turn negative. How do Bloomberg analysts view this?
It is worth noting that according to a Bloomberg report yesterday, the overall Bitcoin spot ETF in the United States experienced a net outflow of $218 million on the 25th. This is one of the most severe single-day capital outflows since the listing of spot ETFs, with Fidelity’s FBTC experiencing an outflow of over $23 million for the first time since its listing.
Due to the persistently strong inflation data recently, which weakened hopes of interest rate cuts by the Federal Reserve, US Treasury bond yields have risen significantly, seemingly reducing investors’ preference for high-risk and volatile assets such as cryptocurrencies.
Source: Bloomberg
The significant slowdown in Bitcoin ETF fund inflows this month has also weakened the momentum of the Bitcoin bull market. BTC fell to $62,391 in the early morning and was trading at $62,895 at the time of writing, a drop of 2.7% in the past 24 hours and a decline of 9.5% in the past 30 days.
Source: Trading View
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