BlackRock’s Bitcoin ETF, IBIT, had been experiencing a remarkable streak of continuous inflows for 71 days since its launch on January 11th. However, this streak came to an abrupt halt, raising concerns among investors, particularly as Bitcoin hovers around the $64,000 mark. Analysts view this as a bearish sign for Bitcoin’s price. This decline in demand may pose challenges for Bitcoin’s recovery rally post the recent halving event.
BlackRock see back-to-back zero flows
BlackRock’s iShares Bitcoin Trust (IBIT) had been consistently receiving net inflows since its inception. However, data from Farside Investors shows that this streak of 71 consecutive trading days with net inflows ended recently.
On Wednesday, IBIT recorded zero net flows, marking a significant departure from its historic performance as a newly established fund. Although IBIT’s streak was notable, Bloomberg Intelligence analyst Eric Balchunas pointed out that other ETFs had longer streaks after establishing themselves over extended periods in the market.
IBIT’s streak reached 71 days on Tuesday, making it the 10th longest streak of all time, as reported in a post by Balchunas. However, data from Farside Investors indicates that net inflows into IBIT halted on Wednesday. On April 25th, IBIT witnessed zero inflow volume, as per data from The Block.
On the same day, only the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Ark 21Shares Bitcoin ETF (ARKB) experienced minor inflows, while the Grayscale Bitcoin Trust ETF (GBTC) recorded net outflows totaling $130 million.
The end of IBIT’s streak follows two consecutive weeks of net outflows for the 11-fund segment. However, despite IBIT’s recent zero inflow volume, its impact on Bitcoin may be limited as sentiment remains buoyed by several bullish metrics, including the recent halving.
Source: Farside
Potential Rebound in Bitcoin Inflow Volume is Expected in the Next Weeks
The flow of funds into US spot Bitcoin ETFs has seen a notable decline in the second quarter. While the first quarter saw peak inflows in February and March, totaling $6 billion and $4.6 billion respectively, April’s inflows in Q2 amounted to only $170 million. This raises questions about declining demand for BTC ETFs.
However, Bitwise CIO Matt Hougan disagrees, asserting in a weekly memo to investment professionals that the potential for additional inflows remains high in the coming months.
Is The Bitcoin Bullrun Over?
During a recent downturn in Bitcoin’s value, MicroStrategy Chairman Michael Saylor stressed the importance of maintaining composure and focus amidst market fluctuations.
The excitement among buyers for the leading cryptocurrency seemed to diminish, partly due to anticipated delays in the Federal Reserve’s interest rate reduction.
Likewise, investors withdrew a net total of $218 million from U.S. Bitcoin exchange-traded funds, marking one of the largest daily outflows, as the enthusiasm for risky assets dwindled amid reduced optimism for Fed interest rate cuts.
In the aftermath of Bitcoin’s recent price turbulence, Michael Saylor’s words echo for those who are looking beyond immediate circumstances. “Keeping your eye on the ball” might serve as a guiding principle for navigating the unpredictable terrain of cryptocurrencies.
