BlackRock iShares Bitcoin Trust (IBIT) ends 71-day streak with zero inflows
The BlackRock-managed iShares Bitcoin Trust (IBIT) has achieved a significant milestone, reaching zero inflows for the first time since the launch of the Bitcoin exchange-traded fund (ETF) in the United States. After a 71-day period in which the exchange-traded fund (ETF) regularly received significant investments each day, this marks the end of this trend.
Bitcoin exchange-traded fund (ETF) inflows are slowing.
Other Bitcoin exchange-traded funds (ETFs) also saw a decline in investor interest at the same time as the halt in inflows associated with IBIT. Both Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) successfully attracted inflows of $5.6 million and $4.2 million, respectively. However, except for these two funds, most Bitcoin exchange-traded funds (ETFs) saw no daily inflows.
IBIT’s outstanding performance
Since its initial launch last January, IBIT has performed exceptionally despite the current operating downturn. Exchange traded funds (ETFs) amassed a total of $15.5 billion in assets under management in just 71 days. This performance placed IBIT among the top 10 exchange-traded funds (ETFs) with the longest daily inflows, surpassing the US Global Jets ETF.
ETF inflows and influencing factors
There are a number of reasons why ETF inflows are currently slowing. A study published by UK-based bank Standard Chartered found that the decline in fund inflows was due to macro factors such as rising government bond yields and geopolitical events in the Middle East. Inflows could increase depending on whether Bitcoin spot ETFs are integrated into larger macro funds.
Revenue generated from Grayscale’s GBTC
Grayscale’s GBTC, one of Bitcoin’s most popular investment vehicles, is facing regular daily outflows. Most Bitcoin exchange-traded funds (ETFs) saw no net inflows on the day GBTC registered a net withdrawal of $130.4 million. The outflow has prompted Grayscale to prepare to introduce a new “mini Bitcoin ETF” that would allow it to compete with other companies and cut costs to attract more investors.
Outlook for Bitcoin Exchange Traded Fund
Despite recent declines in inflows, there are indications that interest in Bitcoin exchange-traded funds (ETFs) may be growing once again. Morgan Stanley is reportedly considering allowing its 15,000 brokers to promote Bitcoin exchange-traded funds (ETFs) to their clients, allowing more money to be deposited into the funds. As a further point of interest, the bank’s prior prediction that Bitcoin would reach $150,000 by the end of the year remains accurate.
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