BlackRock's Bitcoin Trust Hits First Day of Zero Inflows Since US ETF Launch

BlackRock's iShares Bitcoin Trust (IBIT) experienced its first day without inflows since US Bitcoin ETF inception in January, with other products also witnessing a slowdown. Despite this, the US Bitcoin ETF market still holds $12.3 billion in Bitcoin, while Ethereum ETF applications remain pending in the US with SEC delays, while Hong Kong greenlights spot Bitcoin and Ethereum ETFs.

BlackRock's Bitcoin Trust Experiences First Day of Zero Inflows Since US ETF Launch

BlackRock's iShares Bitcoin Trust (IBIT) has reached a milestone, experiencing its first full day without any inflows since the inception of Bitcoin (BTC) exchange-traded funds (ETFs) in the United States in January, according to data from Farside.

Since its launch on January 11, IBIT has consistently garnered millions of dollars in daily investments, amassing nearly $15.5 billion in just 71 days. However, on April 24, the inflow streak came to an end as BlackRock registered zero inflows.

This lack of inflows was not isolated to IBIT, as other products also faced a lull. Only Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) recorded inflows, amounting to $5.6 million and $4.2 million, respectively. In contrast, Grayscale Bitcoin Trust ETF (GBTC) continued to experience outflows, with a recorded $130.4 million on April 24. Cumulatively, spot Bitcoin ETFs realized a net outflow of $120.6 million that day.

While the absence of inflows is a first for IBIT, it is not an uncommon occurrence among other ETF participants. Fidelity's FBTC, for instance, has recorded three days of zero inflows in the past two weeks.

To date, the U.S. Bitcoin ETF market has accumulated a sizeable net $12.3 billion in Bitcoin. However, GBTC outflows have counterbalanced some of the inflows accrued by the remaining nine Bitcoin ETFs, with outflows surpassing $17 billion since January 11.

Broader ETF Landscape

Beyond Bitcoin, the Bitcoin ETF market is witnessing a growing interest in Ethereum (ETH) ETFs. Several market participants have submitted applications for ETH ETFs in the United States. However, the Securities and Exchange Commission (SEC) has recently delayed approval decisions for several of these applications.

For instance, the SEC has extended its decision on whether to permit Grayscale's ETH Trust to be converted into a spot ETH exchange-traded product on NYSE Arca by 60 days to June 23.

This deferral follows BlackRock's filing for its Ethereum spot ETF in mid-November last year, and the SEC opening a comment period on these instruments earlier this month.

Notably, Hong Kong regulators have recently authorized the establishment of the region's first spot Bitcoin and Ethereum exchange-traded funds (ETFs).