Zero Inflows for the First Time
BlackRock’s Bitcoin ETF, iShares Bitcoin Trust (IBIT), has seen a surprising lack of interest from investors. For three days straight (April 24-27), there were zero inflows into the ETF. This is the longest period of zero inflows since its launch.
Outflows from Other Bitcoin ETFs
While IBIT saw no inflows, other Spot Bitcoin ETFs from Grayscale, Fidelity, and Bitwise recorded millions of dollars in outflows. This suggests that investors may be pulling their money out of Bitcoin ETFs in general.
Bitcoin Price Drop
The lack of inflows into IBIT and the outflows from other Bitcoin ETFs have contributed to a drop in the price of Bitcoin. Over the past week, Bitcoin has fallen by 6.29%, and in the past 24 hours, it has dropped by another 2.56%.
Waning Interest in Bitcoin ETFs?
The recent pause in inflows into IBIT has raised questions about whether investors are losing interest in Spot Bitcoin ETFs. The launch of these ETFs was seen as a major catalyst for Bitcoin’s rise to record highs in 2024. However, the decline in inflows suggests that investors may be becoming less enthusiastic about Bitcoin ETFs.
Expert Analysis
Bloomberg analyst James Seyffart suggests that it’s not unusual for ETFs to experience periods of zero flows. He points out that out of 3,500 ETFs in the United States, 2,903 have also experienced similar periods of zero inflows.
