- BlackRock’s Bitcoin ETF, the iShares Bitcoin Trust (IBIT), has seen zero inflows since April 24, ending a 71-day inflow streak.
- Some observers are concerned about the inflow halt, while others suggest it is more normal than the prolonged inflow streak.
- Despite the recent halt, IBIT’s total Bitcoin holdings have increased significantly since its launch in January, while other Bitcoin ETFs like Grayscale’s GBTC have seen outflows.
BlackRock’s spot bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has seen a halt in daily inflows after over two months of continuous growth.
The 71-Day Streak
IBIT, the fastest-growing spot bitcoin ETF in the United States, has not recorded any inflows since April 24. According to data from IBIT’s official page, the fund has held the same 274,462 BTC over the past four trading days.
IBIT had been on a 71-day inflow streak since starting trading on Jan 11 with just 2,621 BTC in holdings. Over that time, it increased its holdings by as much as 103.78%.
Mixed Reactions
Some crypto observers expressed concerns about the halt in inflows, suggesting it is not a good sign for investors. However, other industry experts say IBIT’s 71-day inflow streak was more anomalous than the past four days without inflows.
“For new bitcoins to come in or go out of an ETF, there needs to be a big enough mismatch between supply and demand such that the market makers need to organize the creation or destruction of creation units,” explained Apollo co-founder Thomas Fahrer. “This isn’t unique to the Bitcoin ETFs, this is how ETFs work in general. Most ETFs on most days will record zero inflows. Blackrock‘s trend of positive flows has been an exception to this rule.”
Wider Context
BlackRock’s halt comes as other major ETF issuers like Grayscale see outflows from their spot bitcoin funds. As of April 20, total daily outflows from 10 US spot bitcoin ETFs amounted to 823 BTC, according to data from HODL Capital.
Grayscale’s Bitcoin Trust ETF (GBTC) held around 297,117 BTC on April 20, down 52% from its January 11 holdings. Meanwhile, BlackRock’s IBIT holds 274,462 BTC, only around 8% more than GBTC.
Despite the slowdown, total US spot bitcoin ETF holdings are still up 331% from January 11, amounting to 831,424 BTC on April 29. So while inflows may have stalled for now, the overall picture remains one of growth.
