The iShares Bitcoin Trust (IBIT) managed by BlackRock has experienced zero inflows for the first time since the debut of Bitcoin exchange-traded funds (ETFs) in the United States, signaling a slowdown in inflows for Bitcoin ETFs overall. Other ETFs like Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) have also seen decreased investor interest.
Despite the recent slowdown, IBIT has shown exceptional performance since its introduction in January, amassing roughly $15.5 billion in assets under management in just 71 days. The drop in ETF inflows has been attributed to macro factors like rising Treasury rates and geopolitical events in the Middle East.
Grayscale’s GBTC, a popular Bitcoin investment vehicle, has been experiencing daily outflows, prompting the company to prepare for the introduction of a new “mini Bitcoin ETF” with reduced costs to attract more investors.
There are indications that interest in Bitcoin ETFs may increase again, with reports suggesting that Morgan Stanley is considering allowing its brokers to promote Bitcoin ETFs to clients. Despite the recent slowdown, the bank’s previous forecast that Bitcoin would reach $150,000 by the end of the year remains accurate.
