BlackRock's iShares Bitcoin Trust, managed by BlackRock, has reached a major milestone. It is the first time that the exchange-traded fund (ETF) Bitcoin in the United States has seen zero inflows. This marks the end of the trend that saw the exchange-traded funds (ETFs) receive significant investments every day for a period of 71 consecutive days.
Bitcoin ETFs are experiencing a slowdown in their inflows.
Investor interest in other Bitcoin exchange-traded fund (ETFs), which are also affected by the IBIT, has decreased. Fidelity's Wise Bitcoin Fund (FBTC), and the ARK 21Shares Bitcoin ETF, (ARKB), both attracted inflows of $5.8 million and $4.20 million respectively. The majority of Bitcoin ETFs (exchange-traded funds) did not have daily inflows, except for these two funds.
IBIT's exceptional performance
IBIT's performance has been exceptional since its introduction in January, despite the current economic downturn. The exchange-traded funds (ETFs) managed to amass a total of approximately $15.5 billion assets in just 71 days. IBIT exceeded the U.S. Global Jets ETF was able to surpass the U.S.
Inflows of ETFs and their Influencing Factors
The current slowdown of ETF inflows can be attributed to a variety of factors. According to a Standard Chartered research, the drop in inflows can be attributed macro-causes such as the rising Treasury rates or geopolitical developments in the Middle East.
The revenue generated by Grayscale GBTC
Grayscale's GBTC is one of the best-known investment vehicles for Bitcoin. However, it has seen daily outflows. On the day that GBTC reported net withdrawals totaling $130.4 millions, most Bitcoin exchange-traded fund (ETF)s had no net inflows. Grayscale has been prompted by the outflows to prepare for a new "mini Bitcoin ETF", which will have lower costs to compete with others and attract more investors.
Bitcoin Exchange-Traded funds: Prospects
In spite of the recent decrease in inflows, there are signs that interest in Bitcoin ETFs may increase again. Morgan Stanley, according to reports, is considering allowing their 15,000 brokers the opportunity to promote Bitcoin ETFs to their clients. This could lead to more money being invested in the funds. The bank's previous forecast that Bitcoin will reach $150,000 by the year end is still true.
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