BlackRock’s iShares Bitcoin Trust (IBIT), known for its rapid growth, has recently experienced a halt in daily inflows for the first time since its launch, after maintaining a continuous influx for 71 days. This pause in new investments, occurring over the past four days, has sparked various reactions within the Bitcoin community.
Inflow Streak Breaks
Since April 24, IBIT has not seen any new inflows, maintaining a steady count of 274,462 BTC. This break follows an unprecedented 71-day streak of daily inflows which saw the fund grow its holdings by over 10,378% from its initial amount of 2,621 BTC. The sudden halt has raised concerns among some investors and market observers, who view the interruption as a potentially worrying sign for the market.
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Industry Perspectives
Despite concerns, other crypto experts suggest that the recent halt is less alarming than it appears. They argue that the previous extended period of inflows was the true anomaly. Thomas Fahrer, co-founder of Apollo, explained on the social media platform X that such halts are typical for ETFs, which often record zero inflows on most days. Fahrer emphasized, “For new bitcoins to come in or go out of an ETF, there needs to be a big enough mismatch between supply and demand,” highlighting that BlackRock’s consistent inflows were exceptional.
Comparative ETF Performance
In contrast to BlackRock’s situation, other ETF issuers like Grayscale Investments have continued to see outflows. Data from HODL Capital shows that on April 20 alone, the total outflows from 10 spot Bitcoin ETFs in the United States reached 823 BTC. Grayscale’s Bitcoin Trust ETF (GBTC) now holds approximately 297,117 BTC, which is about 8% more than IBIT’s holdings yet represents a significant decrease of around 52% from its initial holdings since January 11.
Despite this recent halt in inflows, the overall landscape for Bitcoin ETFs in the United States remains positive with a total increase in holdings of 33.1% since January 11, reaching 831,424 BTC. This suggests that while individual funds like IBIT may experience fluctuations, the broader market for Bitcoin ETFs continues to show growth.
