American multinational investment company, black rock has seen a significant lull in investments for its Spots Bitcoin ETF, iShare’s Bitcoin Trust (IBIT). ETF provider recording its longest zero flow periodIt is possible that investor interest in Spot Bitcoin ETFs may wane.
BlackRock sees no Bitcoin ETF flows
Although he is the the largest Spot Bitcoin ETF provider, BlackRock has surprisingly not encountered any inflow activity for about three days. From Wednesday April 24 to Friday April 27, BlackRock recorded 0.0 entries, breakup It is longest record streak of 71 daily entries.
According to an X (formerly Twitter) job from Whale Panda, for three days, Spot Bitcoin ETFs from global asset management companies like Shades of greyLoyalty and Bitwise recorded outings worth millions of dollars. GBTC recorded a total outflow of $352.2 million, while FBTC and BITB accumulated approximately $25.4 million and $9.8 million, respectively.
At the time, only a handful of Spot Bitcoin ETFs saw inflowsincluding Ark 21Shares Bitcoin ETF, ARKB, Franklin Templeton’s Bitcoin ETF, EZBC and Fidelity’s, accumulating total inflows of $9.6 million, $1.9 million and $5.6 million, respectively.
After the temporary cessation of IBIT collections and the increase in outflows from other Spot Bitcoin ETFs, the price of Bitcoin experienced a sharp decline. Over the past week, the world’s largest cryptocurrency saw a whopping 6.29% drop and another 2.56% drop in the last 24 hours, according to CoinMarketCap. These constant declines have pushed Bitcoin price continues to fallto trade at $62,227, at the time of writing.
Are Investors Losing Interest in Bitcoin ETFs?
Since its launch Spot Bitcoin ETF, black rock has checked in a net inflow of more than $13 billion. The strong demand for IBIT has positioned it among the Top Spot Bitcoin ETF Providers and a key player in ETFs within the financial sector.
The recent decline in IBIT flows has raised the possibility of a decrease in interest in Spot Bitcoin ETFs. For mostthe approval and launch of Spot Bitcoin ETFs was a major catalyst for the rise of Bitcoin new all-time highs in March 2024.
A continued inflow of capital from the Soot Bitcoin ETF has been observed for drive the price of Bitcoin to new levels. Conversely, a drop in incoming flows caused a drop in the price of Bitcoin.
Bloomberg Analyst, James Seyffart, as a leading ETF expert solved the mystery behind the unusual halt in inflows to BlackRock’s Spot Bitcoin ETF. Seyffart explain that it was common for the vast majority of ETFs to experience periods of zero flows. He backed up his claim by pointing out that of the 3,500 ETFs in the US, 2,903 had also not seen any IBIT-like flows.
BTC price at $62,200 | Source: BTCUSD on Tradingview.com
Featured image from Coinpedia, chart from Tradingview.com
