Concerns are rising within the Bitcoin (BTC) community as BlackRock’s spot Bitcoin exchange-traded fund (ETF) has halted inflows for multiple consecutive days for the first time since its launch. The iShares Bitcoin Trust (IBIT), which is the fastest-growing spot Bitcoin ETF in the United States, has not seen any inflows since April 24. Data from IBIT’s official page shows that the fund has maintained the same 274,462 BTC over the past four trading days.
BlackRock’s IBIT had a 71-day streak of inflows before it came to a halt on April 24. This has sparked worries among some crypto observers who believe that this event is a negative sign for investors. However, others argue that it is BlackRock’s impressive 71-day inflow streak that is more noteworthy than the recent four-day period with zero inflows.
In order for new bitcoins to enter or exit an ETF, there must be a significant imbalance between supply and demand, prompting market makers to facilitate the creation or destruction of creation units, as explained by Apollo co-founder Thomas Fahrer.
BlackRock’s lack of inflows coincides with other ETF issuers, including the largest seller, Grayscale Investments, experiencing outflows from spot Bitcoin ETFs. According to data from HODL Capital, the total daily outflows from 10 spot Bitcoin ETFs in the United States reached 823 BTC on April 20. On that day, the Grayscale Bitcoin Trust ETF (GBTC) held 297,117 BTC, which is a 52% decrease from its initial holdings on January 11.
While there has been a slowdown in spot Bitcoin ETF inflows in the United States, the overall holdings of these funds have still experienced positive growth since their launch. As of April 29, the total BTC ETF holdings amounted to 831,424 BTC, reflecting a 33.1% increase since January 11.