BlackRock Bitcoin ETF: 69 Days of Inflows on ‘4/20’ Halving

Bitcoin (BTC) is generating a lot of attention and memes lately, especially in relation to its halving event. The success of Bitcoin exchange-traded funds (ETFs) has added to the excitement surrounding this halving. Despite the sideways movement in BTC price, many believe that the timing of the halving is perfect. Eric Balchunas, an ETF analyst at Bloomberg Intelligence, pointed out an interesting coincidence on the halving day. It not only fell on April 20 (known as “4/20,” a significant meme date), but it also marked 69 consecutive days of inflows for the largest US Bitcoin spot ETF.

The inflows to Bitcoin ETFs have slowed down since reaching their peak in March. BlackRock’s iShares Bitcoin Trust (IBIT), the largest ETF by assets under management, has not experienced any outflows. Recent data from Farside, a UK-based investment firm, indicates a tentative return of momentum towards the end of last week. On April 19, IBIT received nearly $30 million in inflows, while the second-largest ETF operated by Fidelity Investments received almost $55 million. The outflows from the Grayscale Bitcoin Trust (GBTC) were modest at $45.8 million.

Opinions regarding the performance of Bitcoin ETFs vary. Some are concerned that they have not gained mainstream acceptance, as evidenced by recent 13F filings. Jim Bianco, creator of macro research firm Biacno Research, described it as a disappointment. He noted that unrealized gains are shrinking rapidly compared to the current BTC price. Balchunas argued that asset managers treat these products like “hot sauce.” He pointed out that although IBIT only has about 60 reported holders, they account for a small percentage of total shares. This suggests that most investors are just testing the waters but with a significant number of potential investors. This aligns with the high daily number of trades and the belief that Bitcoin ETFs will be used as a small addition for 60/40 portfolio diversification.

Bitcoin and its ETFs are capturing the attention of market participants with their interesting coincidences, consistent inflows, and potential for growth. While some remain skeptical of their mainstream adoption, others believe that these products will continue to attract a larger audience, akin to the popularity of hot sauce among different types of investors.

4 thoughts on “BlackRock Bitcoin ETF: 69 Days of Inflows on ‘4/20’ Halving

  1. The increasing interest in Bitcoin ETFs suggests that these products are gaining traction. It’s exciting to see the potential for the future of cryptocurrencies.

  2. I’m impressed by the high daily number of trades in Bitcoin ETFs. 🔄 It shows the active participation of investors in this market.

  3. The performance of Bitcoin ETFs might vary, but overall, they are attracting attention and generating excitement. 💥 It’s a positive sign for the broader cryptocurrency market.

  4. With the recent outflows from GBTC, it’s clear that not everyone is convinced about Bitcoin ETFs.

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