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In the middle of a market meltdown all around the world, Blackrock’s iShares Bitcoin Trust (IBIT), a Bitcoin ETF, keeps seeing inflow.
The only Bitcoin ETF in the US that saw inflows in the past two days is the iShares Bitcoin Trust (IBIT), while all other ETFs experienced no inflows or even outflows.
Blackrock’s IBIT Almost Clocked 200k BTC In March
In just under two months of its launch, the BlackRock iShares Bitcoin ETF (IBIT) managed to accumulate more Bitcoin (BTC) than MicroStrategy (MSTR).
As per disclosure by the fund at the start of March, IBIT held more than 195k Bitcoin after a significant inflow. On the other hand, the most recent public statements from MicroStrategy indicate the company held 193k tokens at the end of February.
Since then, MicroStrategy may have added to that total, as the company announced a $700 million capital raise earlier this week to purchase more Bitcoin. Since the launch of spot ETFs during the first week of January.
BlackRock’s Bitcoin ETF (IBIT) has been adding hundreds of millions of dollars worth of Bitcoin daily, making it the largest of the new spot products (except the Grayscale Bitcoin Trust, which was converted from a closed-end fund).
The next in line after IBIT would be Grayscale’s GBTC, which lost over 200k bitcoins since the spot products opened for business but still holds around 400,000 tokens. The massive demand for the new spot ETFs is the primary reason for Bitcoin’s more than 60% price surge this year. The cryptocurrency reached a fresh all-time high above $70k.
Inflows Amidst Market Crash
According to Farside Investors data, IBIT had net inflows of $73 million on April 15, lower than the $111 million the day before. The other eight ETFs, except Grayscale, had no inflows in the past two days.
However, IBIT’s inflows were insufficient to surpass the outflows from the Grayscale Bitcoin Trust (GBTC). GBTC experienced $110.1 million in outflows on April 15, a decrease from $166 million on April 14. All ten spot Bitcoin ETFs had net outflows on April 14 and 15, amounting to $55.1 million and $36.7 million, respectively.
It came after a volatile weekend for Bitcoin, which is down 11.6% for the week to $63,410. CoinShares’ research head reported that global Bitcoin investment products had outflows of $110 million for the week ending April 12. He believes this highlights the “hesitancy amongst investors” towards the cryptocurrency market.
Butterfill also revealed that all combined crypto investment products had net outflows of $126 million last week. However, the outflows rose from $17 billion to $21 billion, according to the week-on-week volumes. The upcoming halving of Bitcoin’s issuance, scheduled for April 20, is causing price volatility as traders speculate on its impact.
Summary
Even in the middle of the market crash, when people are shifting away from risky assets like cryptos and equities, Blackrock’s ETFs are still seeing inflows. IBIT currently holds more than 195k bitcoin. According to CoinShares’ research head, global Bitcoin investment products had outflows of $110 million for the week ending April 12.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, s or related indexes comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
