The BlackRock-managed iShares Bitcoin Trust (IBIT) has achieved a significant milestone by seeing zero inflows for the first time since the launch of a Bitcoin exchange-traded fund (ETF) in the United States. After a period of 71 days during which exchange-traded funds (ETFs) regularly received significant inflows on a daily basis, this signals the end of that trend.
Bitcoin exchange-traded fund (ETF) flows are slowing.
Other Bitcoin exchange-traded funds (ETFs) have also seen a decline in investor interest, which coincides with the cessation of inflows associated with IBIT. Both Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) managed to attract inflows of $5.6 million and $4.2 million respectively. However, except for these two funds, most Bitcoin exchange-traded funds (ETFs) had no daily inflows.
Exceptional performance from IBIT
Since it was first introduced in January, IBIT has shown exceptional performance despite the current slowdown in its operations. A total of approximately $15.5 billion of assets under management were acquired by exchange-traded funds (ETFs) in just 71 days. This achievement resulted in IBIT being able to overtake the US Global Jets ETF, placing it among the top 10 exchange-traded funds (ETFs) with the longest period of daily inflows.
ETF flows and their influencing factors
Several reasons can be cited for the current slowdown in ETF inflows. The decline in inflows has been attributed to broader causes such as rising Treasury rates and geopolitical events in the Middle East. As research published by United Kingdom-based bank Standard Chartered said, it is possible that the first wave of ETF purchases may be due to its The peak has been reached, and the next wave of inflows may depend on the addition of spot bitcoin ETFs to larger macro funds.
Revenue generated by Grayscale’s GBTC
Grayscale’s GBTC, one of the most well-known investment vehicles for Bitcoin, is facing regular daily outflows. Most Bitcoin exchange-traded funds (ETFs) had no net inflows on the day GBTC recorded net outflows of $130.4 million. The outflows have prompted Grayscale to prepare for the launch of a new “mini Bitcoin ETF,” which will lower costs to compete with other companies and attract a greater number of investors.
Prospects for Bitcoin exchange-traded funds
Despite the fact that inflows have been decreasing recently, there are indicators that interest in Bitcoin exchange-traded funds (ETFs) may be on the rise once again. Morgan Stanley is reportedly considering the possibility of allowing its 15,000 brokers to promote a Bitcoin exchange-traded fund (ETF) to their clients, which could result in more money being pooled into the fund. As an additional point of interest, the bank’s prior forecast that Bitcoin would reach $150,000 by the end of the year is still accurate.
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