The iShares Bitcoin Trust (IBIT), managed by BlackRock, has reached a noteworthy milestone as it experienced zero inflows for the first time since the introduction of Bitcoin exchange-traded funds (ETFs) in the United States. This marks the end of a streak of 71 days during which the ETF regularly received significant investments on a daily basis.
The slowdown in inflows is not exclusive to IBIT; other Bitcoin ETFs have also witnessed decreased investor interest. However, exceptions include the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB), which attracted inflows of $5.6 million and $4.2 million, respectively. Nevertheless, the majority of Bitcoin ETFs saw no daily inflows.
Despite the recent slowdown, IBIT has demonstrated exceptional performance since its launch in January. Within just 71 days, the ETF accumulated approximately $15.5 billion in assets under management, surpassing the U.S. Global Jets ETF and ranking among the top 10 ETFs with the longest streaks of daily inflows.
Several factors may contribute to the current slowdown in ETF inflows, including rising Treasury rates and geopolitical events in the Middle East. Additionally, the initial wave of ETF purchases may have peaked, with future inflows potentially contingent on the integration of spot Bitcoin ETFs into larger macro funds.
Grayscale’s GBTC has also experienced regular daily outflows, prompting the company to prepare for the launch of a new “mini Bitcoin ETF” with reduced costs to compete with other offerings and attract more investors.
Despite recent decreases in inflows, there are indications that interest in Bitcoin ETFs may rebound. Reports suggest that Morgan Stanley is considering allowing its brokers to promote Bitcoin ETFs to clients, potentially leading to increased fund deposits. Furthermore, the bank’s previous forecast of Bitcoin reaching $150,000 by year-end remains valid, adding to the positive outlook for Bitcoin ETFs.
