First Time In 71 Days: BlackRock’s Bitcoin ETF ‘IBIT’ Registers Zero Inflows

In a notable development in the Bitcoin (BTC) market, BlackRock’s Bitcoin ETF, under the ticker name IBIT, has experienced a significant change in trading dynamics.

After achieving an amazing record of 71 consecutive days, inflowIBIT recorded zero inflows during trading on Wednesday, the first time in nearly three months.

A tipping point for BlackRock’s Bitcoin ETF?

IBIT is Most likely candidate In the competition among Bitcoin ETFs, it secured the top spot in terms of inflow amount and trading volume. However, this recent cessation of inflows, while falling short of claiming a record for consecutive days of inflows, signals a potential turning point for the fund.

Eric Balchunas, ETF expert at Bloomberg, says: highlighted Pointing out the significance of IBIT’s 71-day consecutive inflow, he noted that this is close to a record and highlighted its formidable performance since its inception.

By comparison, even the popular gold ETF GLD experienced an impressive three-day streak of inflows in its early launch phase, Balciunas points out.

BlackRock’s Bitcoin ETF ranks among the top 10 ETFs with the most consecutive inflows. sauce: Eric Balchunas of X

Nevertheless, the lack of inflows into BlackRock on Wednesday is not unusual. Eight other Bitcoin ETF issuers also reported zero inflows.

Of note are Fidelity, a strong contender in the ETF race, and runner-up Inflows have increased since trading began in January, and the only manager to record inflows during Wednesday’s trading was Cathie Wood’s Ark Invest, with $5.6 million and $4.2 million, respectively.

Meanwhile, Grayscale, one of the world’s largest holders of BTC, continues to experience outflows, with a staggering $130 million lost on Wednesday alone.

According to Farside data, Grayscale’s ETF GBTC recorded total outflows of $1.2 billion in April alone. These outflows have put downward pressure on Bitcoin’s price, which has fallen 4.2% in the past 24 hours and is currently trading at $62,990.

Decreasing demand and negative funding rates

Amid various developments in the Bitcoin market, bullish traders are showing signs of reducing their positions in the world’s largest cryptocurrency as two key factors that propelled Bitcoin’s growth begin to decline.

according to Bitcoin’s funding rate, which represents the premium traders pay to open new long positions in the perpetual futures market, turned negative on April 19 for the first time since October 2023, according to Bloomberg.

This change in funding rates follows the launch of multiple U.S. spot Bitcoin ETFs on March 15th, which helped the token hit a record high of $73,700, as Bitcoin demand moderated. It is shown that.

Bitcoin funding rates reached a three-year high in March, indicating the market is overheating.But as of Tuesday, it was below zero.suggesting a decrease in the desire among traders to open long positions.

Julio Moreno, Head of Research at CryptoQuant, said this trend is reducing the appetite of traders to enter new long positions.

Vettle Runde, an analyst at K33 Research, said it was unusual for funding rates to remain between neutral and below neutral for 11 consecutive days. A flurry of leveraged bets follows past declines in funding rates.

Runde suggested that the extension of the current perpetual discount period could indicate further price stability in the market.

Additionally, open interest in Chicago-based CME Group’s Bitcoin futures market has fallen 18% from its all-time high. This decline reflects wavering interest in crypto-related exposures and hedging among US institutions.

As the crypto market looks for new catalysts, all eyes are on Hong Kong, where a new Spot Bitcoin ETF has been set up. Scheduled to debut. The market will be watching intently to see if these ETFs can generate even a fraction of the demand that U.S. ETFs enjoy.

Bitcoin ETF
The daily chart shows that the price of BTC has been trending downward over the past 24 hours. sauce: BTCUSD on TradingView.com

Featured image from Shutterstock, chart from TradingView.com

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