The BlackRock iShares Bitcoin Trust (IBIT) experienced no new investments, marking its initial day without inflows since the introduction of Bitcoin ETFs in the US market back in January.
Beginning January 11th, IBIT has consistently attracted large sums of money as investments each day, amounting to around $15.5 billion in total over the past 71 days. However, BlackRock’s investment flow came to a halt on April 24th, reporting no new inflows that day.
Bitcoin ETF Flow (US$ million) – 2024-04-24TOTAL NET FLOW: -120.6(Provisional data)IBIT: 0FBTC: 5.6BITB: 0ARKB: 4.2BTCO: 0EZBC: 0BRRR: 0HODL: 0BTCW: 0GBTC: -130.4DEFI: 0For all the data & disclaimers visit:— Farside Investors (@FarsideUK) April 25, 2024
Among the eleven Bitcoin ETFs approved in the US, just Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) attracted investors with total inflows of $5.6 million and $4.2 million respectively, while others encountered a period of little to no growth.
During this period, the Grayscale Bitcoin Trust ETF (GBTC) endured setbacks. Specifically on April 24th, GBTC disclosed a withdrawal of approximately $130.4 million, resulting in a total daily outflow of $120.6 million for spot Bitcoin ETFs.
IBIT typically receives consistent inflows without interruption. However, this pattern hasn’t been the case for ETF market participants. For instance, Fidelity’s FBTC experienced zero inflows on three separate occasions over the past fortnight.
So far, US Bitcoin ETFs have amassed a total of $12.3 billion worth of Bitcoin assets. Yet, GBTC has seen significant withdrawals, with over $17 billion withdrawn as of January 11th.
Previously, on April 24th, Eric Balchunas, an analyst at Bloomberg Intelligence specializing in ETFs, praised the IBIT ETF on X for its impressive 71-day run of consecutive investments.
The fund has outperformed both the Global Jets ETF and Vanguard’s bond market ETF and developed markets ETF, according to Balchunas, who labeled these two as “one-trick ponies” and “money vacuum cleaners.”
BlackRock’s Bitcoin ETF has made it into the list of the ten largest funds ever, according to another measurement, thanks to its impressive streak. But Balchunas warned that there’s still a significant way to go before reaching the very top positions.
The JPMorgan Equity Premium Income ETF, managed by JPMorgan, boasts the longest period of new investments among all ETFs at an impressive 160 days. With a significant asset value of $18.27 billion, BlackRock’s Bitcoin investment fund places in the top 3% of all established ETFs.
The reason for the ETF’s success lies in institutions slowly adding Bitcoin to their investments. However, this cryptocurrency does not play a major role in their overall business plans. Balchunas referred to it as an exciting addition or “spice” for larger investment portfolios.
“Shows that most of the bites are nibbles but there are a lot of fish,” he said.
Although BlackRock’s foray into cryptocurrencies hasn’t yielded instant triumph for all their initiatives. Their tokenized fund, BUIDL, launched on Ethereum on March 20, has so far failed to draw a significant number of investors.
Although BUIDL saw a significant surge of 100% increase in a short timeframe, analysis of on-chain information reveals that most of the fund’s assets are distributed among eleven different wallets.
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2024-04-25 11:42