BlackRock’s Bitcoin ETF, IBIT, has recorded zero inflows for the fifth consecutive trading day despite a recent uptick in overall inflows into spot Bitcoin ETFs. This has led to questions about the future of Bitcoin ETFs, which were highly anticipated earlier this year.
Overall inflows into spot Bitcoin ETFs reached about $11.8 million on June 27, showing renewed interest, but IBIT did not benefit. In contrast, Grayscale’s GBTC saw significant outflows of $11.4 million on the same day and has experienced total outflows nearing $18.5 billion since its inception.
Market analysts are not overly concerned about the lack of interest in IBIT, citing BlackRock’s internal Bitcoin purchases through its various funds as a mitigating factor. SEC filings revealed that BlackRock has been acquiring Bitcoin for its Global Allocation Fund via the IBIT Bitcoin ETF, demonstrating internal confidence in the fund.
The Global Allocation Fund is the third BlackRock fund to gain exposure to Bitcoin through IBIT, following the Strategic Income Opportunities Portfolio and the Strategic Global Bond Fund. BlackRock’s acquisition of 43,000 iShares Bitcoin ETF shares for the Global Allocation Fund further showcases this internal support.
Broader market trends suggest waning excitement around Bitcoin ETFs due to the Federal Reserve’s hawkish inflation stance and the anticipation of ETFs for other cryptocurrencies like Solana and Ethereum. This diversification of investor interest indicates that while the zero inflows into BlackRock’s IBIT ETF are notable, they are part of a broader shift toward other digital assets.
