- BlackRock’s spot Bitcoin ETF (IBIT) saw zero inflows this week, ending its 71-day streak of fresh investments totaling around $17.24 billion in assets under management.
- Fidelity’s FBTC, the current runner-up in the ETF race, reported losses of $22.6 million on Thursday, its first reported outflow, taking its assets under management to around $9.9 billion.
- The easing interest in the two leading Bitcoin ETFs is a key indicator of the cryptocurrency market’s cooling over the last month, and a suggestion that the initial ETF frenzy that caused Bitcoin to skyrocket has settled.
The feverish demand for Bitcoin exchange-traded funds (ETFs) is showing signs of slowing down as the crypto market loses steam. Two of the most popular Bitcoin ETFs, from BlackRock and Fidelity, saw an end to their incredible inflow streaks this week.
BlackRock’s Bitcoin ETF Sees First Outflows in Over 2 Months
BlackRock’s spot Bitcoin ETF (IBIT) reported zero inflows on Wednesday and Thursday, ending a 71-day run that saw the fund amass over $17 billion in assets under management. IBIT had been the clear leader in the “cointucky derby,” as analysts call the race between new Bitcoin ETFs. But the fund’s streak coming to an end signals diminishing interest.
Fidelity’s Bitcoin ETF Posts First Outflows Ever
Fidelity’s spot Bitcoin ETF (FBTC), the second most popular behind IBIT, saw its first outflow ever on Thursday. The fund lost $22.6 million in assets, taking its total assets under management down to around $9.9 billion. Along with IBIT’s stalled inflows, FBTC’s outflows show that the Bitcoin ETF craze is cooling off.
Bitcoin Price Stagnation Contributes to Lower ETF Interest
The decreasing appetite for Bitcoin ETFs correlates with Bitcoin’s price stagnation over the past month. After hitting an all-time high of $73,000 in March, Bitcoin has dropped around 12% and is hovering around $63,500. Besides mirroring Bitcoin’s lackluster price action, ETF inflows may also be slowing due to Bitcoin’s recent “halving” event and fading hopes of Fed rate cuts.
ETF Flows Expected to Fluctuate Over Time
According to ETF experts, it’s normal for inflows to fluctuate based on an asset’s performance. So Bitcoin’s stagnant price is likely resulting in lower ETF interest for now. But the long-term adoption trend remains strong, considering these funds have amassed over $54 billion in just three months. Countries like Hong Kong are still approving Bitcoin ETFs, signaling there is a lot more room for growth.
Bitcoin ETFs Remain a Runaway Success
While demand has cooled recently, Bitcoin ETFs have been an undeniable success overall. They’ve opened the crypto market to millions of mainstream investors in an incredibly short period of time. And this is still just the beginning, with more institutions and countries expected to embrace Bitcoin ETFs going forward. The temporary stagnation doesn’t change the fact that these funds are revolutionary for bringing crypto into the mainstream
