- Despite market slowdowns, IBIT has seen no outflows, demonstrating ongoing investor interest; Fidelity’s ETF garners $55 million.
- Jim Bianco critiques mainstream Bitcoin ETF adoption as disappointing, citing significant decreases in unrealized investor gains.
The BlackRock iShares Bitcoin Trust (IBIT) has recorded 69 consecutive days of investment inflows, coinciding with the Bitcoin “4/20” halving event. This event on April 20 is notable not only for its timing but also because it aligns with cultural references associated with that date.
Eric Balchunas, analyst at Bloomberg Intelligence, noted the coincidence that this significant event in the cryptocurrency market occurred on a culturally relevant date. This has prompted discussions and a variety of memes within the online Bitcoin community.
Waking up on 4/20 to see $IBIT took in cash for the 69th straight day, which was also the halving. It’s a little too perfect https://t.co/7Z8W3t9L7h
— Eric Balchunas (@EricBalchunas) April 20, 2024
Despite a slowdown in new investments into Bitcoin ETFs after reaching their peak in March, IBIT has not experienced any outflows, indicating sustained investor interest. Data from Farside, an investment firm based in the United Kingdom, showed a tentative increase in ETF investments towards the end of the week.
Specifically, on April 19, IBIT attracted nearly $30 million in investments, while a Fidelity Investments-managed ETF saw an influx of nearly $55 million.
In contrast, the Grayscale Bitcoin Trust (GBTC) reported outflows of $45.8 million on the same day, continuing its trend of varying performance compared to other funds.
Addressing the broader market, Jim Bianco of Bianco Research commented on the mainstream adoption of Bitcoin ETFs, labeling the first-quarter allocation data as disappointing.
He highlighted that the unrealized gains for investors in these ETFs have decreased significantly, suggesting limited market penetration and profitability.
Conversely, Balchunas offered a more positive view on the strategic use of Bitcoin ETFs by asset managers. He described their approach to these investments as cautious, using them sparingly to enhance portfolio diversity.
This indicates a selective but broad interest in Bitcoin ETFs, with only 0.4% of total shares being held by about 60 holders, yet maintaining a high volume of daily trades. This reflects a pattern of cautious engagement with Bitcoin ETFs, which are considered by some as a minor yet impactful addition to investment strategies.
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