After a 71-day streak of continuous inflows, BlackRock’s Bitcoin ETF, IBIT, experienced a sudden shutdown with no new inflows. This sudden stop has raised concerns among investors, especially as Bitcoin consolidates around the $64,000 level. Many analysts view this as a bearish indicator for the price of Bitcoin, suggesting that the halt in inflows from a major Bitcoin ETF issuer could cause buying demand to drop. This drop in demand could make it difficult for Bitcoin to continue its recovery after the recent halving event.
Blackrock ETF Sees No Buying Demand
BlackRock’s Bitcoin Spot ETF has maintained a remarkable streak of net inflows since its January 11 launch. However, according to data from Farside Investors, this streak of 71 consecutive trading days with net inflows is now over.
The iShares Bitcoin Trust (IBIT) saw zero net flows on Wednesday, breaking a record for a newly launched ETF. While IBIT’s performance was historic for a newly minted fund, Bloomberg Intelligence analyst Eric Balchunas noted that other ETFs had longer streaks after establishing themselves over months and years on the walk.
The IBIT entry streak reached 71 days on Tuesday, making it the 10th longest streak of all time, as reported in an X article by Balchunas. However, according to data from Farside Investors, net inflows into the IBIT stopped on Wednesday. On April 25, IBIT again recorded zero inflow volume, according to data from The Block.
On the same day, only the Fidelity Wise Origin Bitcoin Fund (FBTC) and the Ark 21Shares Bitcoin ETF (ARKB) saw minor inflows, while the Grayscale Bitcoin Trust ETF (GBTC) saw net outflows amounting to 130 million dollars.
The conclusion of IBIT’s streak follows two straight weeks of net outflows for the 11-fund segment. However, its recent zero entry volume might not have a big impact on Bitcoin as sentiment is supported by several other bullish metrics, including the recent halving.
Entry volume could rebound in the coming weeks
The flow of funds into spot Bitcoin ETFs in the United States saw a significant decline in the second quarter. During the first quarter, the peak inflows were observed in February, totaling $6 billion, followed in March with $4.6 billion. In January, $1.5 billion was generated as the market became familiar with the new products.
However, ETF inflows for April in the second quarter were only $170 million. This begs the question: is demand for BTC ETFs declining?
Bitwise CIO Matt Hougan disagrees. In a weekly note to investment professionals, Hougan said the potential for additional inflows remains high in the coming months.
Yesterday was the first time since its creation that FBTC experienced outflows amounting to $22.6 million. Meanwhile, other funds such as Ark Invest’s ARKB, Bitwise’s BITB, and Valkyrie’s BRRR also saw outflows of $31.3 million, $6 million, and $20.2 million, respectively.
Additionally, Grayscale’s GBTC, which is experiencing a 73-day outflow streak since converting from a Bitcoin Trust, saw withdrawals totaling $139.4 million. The only ETF to see inflows was managed by asset manager Franklin Templeton, receiving investments of $1.9 million.
