BlackRock’s Bitcoin ETF stopped receiving new investments on April 24, halting a period of consistent inflow based on analysis using Farside data.
For the first time since Bitcoin ETFs began trading in the US in January, iShares Bitcoin Trust of BlackRock didn’t receive any more financing on April 24.
IBIT has taken in millions of dollars in investments every day since it launched on January 11. It raised over $15.5 billion in 71 days. But BlackRock’s inflow record ended on April 24, when it got no more money.
Many other Bitcoin ETFs also didn’t get new investments. Only the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21 Shares Bitcoin ETF (ARKB), which received $5.6 million and $4.2 million, obtained funds out of the 11 Bitcoin ETFs available in the US.
Blackrock’s Bitcoin ETF Impact: GBTC Losses & SEC Delay:
The Grayscale Bitcoin Trust ETF (GBTC) also kept losing money. GBTC lost $130.4 million on April 24. Because of this, the combined loss of all spot Bitcoin ETFs was $120.6 million.
Although IBIT’s lack of new funding is a first, other ETFs often experience similar situations. For instance, in the past two weeks, Fidelity FBTC has seen three days with no new investments.
US-based Bitcoin ETFs have amassed over $12.3 billion in Bitcoin so far. Yet some of the gains that came from the other ten Bitcoin ETFs have been offset by the withdrawal from GBTC. Since January 11, GBTC has lost more than $17 billion.
Ether (ETH) ETF approval in the United States is something that a few participants in the Bitcoin ETF market are pursuing. The Securities and Exchange Commission (SEC), though, has decided to delay approving many of these ETFs.
The SEC mentioned in its notice on April 23:
“The Commission finds that it is appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider the proposed rule change, as modified by Amendment No. 1.”
The SEC granted a sixty-day extension to the conversion of Grayscale’s ETH Trust to a spot ETH exchange-traded product on NYSE Arca. The new deadline set by the agency is June 23.
