BlackRock's Bitcoin spot ETF, IBIT, set a new record for inflows for new exchange-traded funds launched on the market.
Bloomberg ETF analyst Eric Balchunas noted that BlackRock's iShares Bitcoin Trust (IBIT) has been the only new listed investment fund in setting a record of 71 consecutive days of entries.
For context, the expert stressed that the gold ETF, GLD, had an incredible launch. Still, its streak of consecutive inflows lasted only 3 days.
In the case of IBIT, the Bitcoin spot ETF remained among the Top 10 of the main exchange-traded funds, in relation to fund inflows. This select group of ETFs includes the exchange-traded funds of several of the most important companies in the financial sector.
Bitcoin investor frenzy calms down
After accumulating 71 consecutive days of fund inflows, IBIT succumbed to the feeling of uncertainty that dominates the market. As several experts have pointed out, investor interest in Bitcoin began to wane amid concerns about inflation, tensions in the Middle East and regulatory uncertainty for cryptocurrencies in the United States.
Although the approval of Bitcoin spot ETFs is seen as a step forward in regulatory clarity, providing greater legitimacy to cryptocurrency as an investment asset, regulators remain hostile towards the crypto industry at large. This has impacted the ETF market, driving outflows from these funds.
To date, BlackRock's Bitcoin ETF was the only cash fund that reflected investor appetite for the cryptocurrency, with consecutive inflows since its launch and listing on the market. However, on April 24, IBIT did not record any background entry.
Source: SoSo Value
IBIT vs GBTC
In contrast to IBIT, Grayscale's exchange-traded fund, the Grayscale Bitcoin Trust (GBTC), is currently recording 72 consecutive days of outflows, which exceed the $ 16.900 million dollarsIn fact, since being approved by the SEC to become a spot ETF, GBTC has seen more outflows than inflows of funds.
On the other hand, data from CoinShares suggests that negative market sentiment is being led by US investors.
In her Weekly Report No. 179Regarding inflows into cryptocurrency-based investment products, the firm highlighted that US investors are concerned about the Federal Reserve's (FED) interest rate expectations, as well as the consequences of the halving that took place on April 20 on crypto mining companies.
Crypto investment products saw outflows totaling $206 million in the past week. Trading volumes for these funds fell slightly to $18.000 billion, while stocks related to Bitcoin mining and blockchain technology saw an outflow of $9 million, CoinShares said in the report.
Continue reading: Bitcoin is now scarcer than gold
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