On April 24, for the first time since the US approved Bitcoin exchange-traded funds (ETFs), BlackRock’s iShares Bitcoin Trust (IBIT) experienced a day with no new inflows.
Until this point, IBIT had consistently attracted investments every day since its launch in January, amassing about $15.5 billion over 71 days.
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While IBIT’s zero-inflow day was a first, it’s not unique in the broader Bitcoin ETF market, as other funds have also experienced days with no new investments in recent weeks.
According to Farside data, on that day, of the eleven Bitcoin ETFs registered in the US, only the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB) saw new inflows, drawing $5.6 million and $4.2 million, respectively.
The Grayscale Bitcoin Trust ETF (GBTC) continued its decline with outflows of $130.4 million, contributing to a net outflow of $120.6 million across all Bitcoin ETFs. Grayscale’s total outflows now stand at around $17 billion.
Moreover, several Bitcoin ETF participants are seeking regulatory approval to launch Ether-based ETFs. However, the US Securities and Exchange Commission (SEC) has postponed its decision on these applications. In an April 23 notice rule, the SEC stated:
The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change, as modified by Amendment No. 1, and the issues raised therein.
Therefore, BlackRock’s IBIT recording a day without inflows coincides with regulatory hesitations and challenges, reflecting the complexity of crypto investments.
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