BlackRock's Bitcoin ETF Bucks the Trend with Continued Inflows Amid Market Outflows

BlackRock's Bitcoin (BTC) ETF has experienced inflows over the past two days, while all other U.S.-based spot Bitcoin ETFs have seen outflows. However, these inflows were insufficient to offset outflows from the Grayscale Bitcoin Trust (GBTC), resulting in net outflows for all 10 spot Bitcoin ETFs. This follows a volatile weekend for Bitcoin, which has declined 11.6% to $63,410.

BlackRock's Bitcoin ETF Remains a Beacon of Inflows Amidst Industry Outflows

NEW YORK, April 18, 2023 - BlackRock's Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), has emerged as a beacon of stability in an otherwise bearish market for Bitcoin ETFs in the United States.

Over the past two days, IBIT has recorded net inflows of $73.4 million, while all other Bitcoin ETFs have either registered zero inflows or suffered outflows. IBIT's positive inflows, although slightly lower than the $111.1 million recorded on April 15, stand in stark contrast to the broader market sentiment.

The data, compiled by Farside Investors, reveals that the eight other Bitcoin ETFs, excluding Grayscale's Grayscale Bitcoin Trust (GBTC), have experienced negligible flows over the past two days.

Despite IBIT's inflows, it was not enough to offset the significant outflows from GBTC. GBTC, the largest Bitcoin ETF in the world, saw $110.1 million in outflows on April 15, following $166.2 million in outflows on April 14.

Overall, all 10 spot Bitcoin ETFs witnessed net outflows on April 14 and 15, amounting to $55.1 million and $36.7 million, respectively.

The recent outflows from U.S. Bitcoin ETFs mirror a tumultuous weekend for the cryptocurrency, which has plummeted 11.6% over the past week, currently trading at $63,410 as per Cointelegraph Markets Pro.

Global Bitcoin investment products have also experienced outflows, with CoinShares reporting $110 million in outflows for the week ending April 12. James Butterfill, CoinShares' research head, attributes this to "hesitancy amongst investors."

Butterfill further noted that combined crypto investment products witnessed net outflows of $126 million last week, while week-on-week volumes surged from $17 billion to $21 billion.

TradingView data indicates that Bitcoin has stabilized above its weekly low following a sharp decline triggered by Iran's April 13 attack on Israel. The cryptocurrency's upcoming halving event on April 20, which will reduce its issuance rate by half, has also introduced price volatility as traders speculate on its potential impact.