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BlackRock's iShares Bitcoin Trust Is the Sole Recipient of Capital This Week

The money flow into Bitcoin ETFs is fading rapidly 

As the cryptocurrency market experiences significant outflows, BlackRock's iShares Bitcoin Trust emerges as the only fund with positive inflows in recent days.

Key takeaways:

  • BlackRock's iShares Bitcoin Trust reported $184.5 million in inflows over two days.
  • The broader U.S. Bitcoin ETF market faced net outflows, with Grayscale seeing the largest reductions.

Over the past two days, BlackRock’s iShares Bitcoin Trust (IBIT) has distinguished itself as the only U.S.-based spot Bitcoin ETF to experience inflows, at a time when other funds are seeing stagnation or declines. According to Farside Investors data, IBIT recorded net inflows totaling $73.4 million on April 15, a decrease from $111.1 million on April 14. In contrast, other ETFs, including eight competitors and excluding Grayscale’s Bitcoin Trust (GBTC), reported zero inflows during the same period.

Despite the positive inflows to IBIT, the overall U.S. Bitcoin ETF sector experienced net outflows, with Grayscale's GBTC seeing significant withdrawals amounting to $110.1 million on April 15, down from $166.2 million the previous day. 

Collectively, all 10 spot Bitcoin ETFs witnessed net outflows of $55.1 million and $36.7 million on April 14 and 15, respectively.

Broader implications and investor sentiment

The recent movements in Bitcoin ETFs occur amidst a volatile period for Bitcoin, which has seen its price decrease by 11.6% over the week, reaching a three-week low of $61,918. This decline was influenced by geopolitical tensions, notably Iran's April 13 attack on Israel. Additionally, the impending Bitcoin halving slated for April 20 adds to the market's uncertainty, as investors speculate on its potential impact on Bitcoin's price.

James Butterfill, the head of research at CoinShares, commented on the overall market trend, noting: 

"Global Bitcoin investment products saw outflows of $110 million for the week ending April 12, which highlights the hesitancy amongst investors." 

He also observed that combined crypto investment products registered net outflows of $126 million last week, though trading volumes increased from $17 billion to $21 billion.

These dynamics underscore the cautious stance of investors as they navigate through significant price volatility and market uncertainty leading up to key events in the cryptocurrency space.