On April 24th, 2023, BlackRock's Bitcoin Exchange-Traded Fund (ETF), known as the iShares Bitcoin Trust (IBIT), recorded no new investments for the first time since its launch in January. This marked the end of a remarkable streak where IBIT had consistently attracted millions of dollars in investments every single day.

Over the course of 71 days since its debut, IBIT had amassed a staggering $15.5 billion in total investments, solidifying its position as a major player in the Bitcoin ETF market.

Bitcoin ETF Market Dynamics

While a day without inflows is a first for IBIT, such occurrences are not uncommon among other Bitcoin ETF participants. For instance, Fidelity's FBTC has recorded three days of zero inflows within the last two weeks.

Despite the recent slowdown, the Bitcoin ETF market in the United States has accumulated a substantial net inflow of $12.3 billion since the launch of these products.

Other Bitcoin ETFs Also Experience a Lull

The lack of inflows was not limited to BlackRock's IBIT. Out of the 11 Bitcoin ETFs currently registered in the United States, only two managed to attract new investments on April 24th – the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB), which recorded inflows of $5.6 million and $4.2 million, respectively.

On the other hand, the Grayscale Bitcoin Trust ETF (GBTC) continued to experience outflows, with $130.4 million being withdrawn from the fund on the same day. As a result, the overall spot Bitcoin ETF market witnessed a net outflow of $120.6 million.

Potential Ether ETF Approvals Delayed

Alongside the Bitcoin ETF market, several participants are also seeking approval for Ether ETFs in the United States. However, the Securities and Exchange Commission (SEC) recently delayed its decision on several of these proposed products, including the potential conversion of Grayscale's Ethereum Trust to a spot Ether ETF on the NYSE Arca exchange.

The SEC extended the deadline for its decision by 60 days, pushing it to June 23rd, citing the need for additional time to consider the proposed rule change.

Our Expert's Thoughts

The end of BlackRock's IBIT inflow streak is a significant event in the Bitcoin ETF market, as it marks the first time investors have taken a pause from pouring money into this particular fund. While a single day without inflows may not be cause for concern, it serves as a reminder that even the most successful investment products can experience fluctuations in demand.

Conclusion:

It is important to note that the broader Bitcoin ETF market also experienced a slowdown on April 24th, 2024 with only two funds attracting new investments and the overall market witnessing a net outflow. Additionally, the SEC's decision on Ether ETFs could potentially open up new investment opportunities and further solidify the presence of cryptocurrencies in the mainstream financial market.