The Pause in Inflows to BlackRock’s iShares Bitcoin Trust
BlackRock’s iShares Bitcoin Trust (IBIT) has recently hit a milestone – for the first time in over two months, it has recorded no new inflows. This pause marks a significant shift in its growth trajectory, amidst broader fluctuations in the US spot Bitcoin ETFs market, in contrast to the innovation in overseas markets like Hong Kong.
US Spot Bitcoin ETFs Stalling While Hong Kong Innovates
On April 24, US Bitcoin ETFs experienced a cumulative daily outflow of $120.64 million, as reported by SoSo Value. Notably, IBIT, which had seen consistent inflows for 71 trading days, did not record any inflows on that date.
- IBIT still holds the largest cumulative inflow among its peers, totaling $15.4 billion.
The other US spot Bitcoin ETFs saw minimal positive movement during the same period. Only Fidelity Wise Origin Bitcoin (FBTC) and ARK 21 Shares Bitcoin ETF (ARKB) recorded inflows of $5.61 million and $4.17 million, respectively.
- Meanwhile, Grayscale Bitcoin Trust ETF (GBTC) faced challenges, with daily outflows of $130.42 million, leading to negative cumulative flows of $16.96 billion.
Hong Kong’s Innovation in ETFs
On the other hand, Hong Kong’s HashKey Exchange announced a collaboration with Boshi International and HashKey Capital to launch Boshi Hashkey Bitcoin Spot ETF and Boshi Hashkey Ethereum Spot ETF, offering physical redemption of assets. This strategic advantage may appeal to investors seeking direct exposure to cryptocurrencies without selling them immediately.
- The Hong Kong ETFs are set to start fundraising, with listing on the Hong Kong Stock Exchange scheduled for April 30.
Despite the enthusiasm in Hong Kong, analysts remain cautious about the new ETFs’ immediate impact on the market. Eric Balchunas, a Senior ETF Analyst at Bloomberg Intelligence, pointed out the limitations of the Hong Kong market, emphasizing its less liquid and efficient ecosystem, which could affect the ETFs’ performance.
“The underlying ecosystem there is less liquid and efficient, which could affect the performance of these ETFs,” he said.
Long-Term Benefits and Overall Market Impact
Despite the immediate challenges, Balchunas remains optimistic about the long-term benefits, stating that the addition of BTC ETFs in other countries is positive for Bitcoin. This contrasts with the cautious approach in the US, where the appetite for Bitcoin ETFs and future growth remain uncertain.
- The contrast between the US market’s stagnation and Hong Kong’s innovation highlights the different approaches to crypto investments.
- Analysts are observing the developments in both markets to gauge the overall impact on the global crypto landscape.
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