BlackRock’s Bitcoin ETF experiences zero inflows
BlackRock’s Bitcoin ETF has encountered three consecutive days without any new investments, setting it apart from other Bitcoin ETF products that have witnessed significant outflows totaling $328 million.
Explaining the absence of inflows in BlackRock’s ETF
The current trend of zero inflows has raised concerns among some members of the community who interpret it as a sign of diminishing investor interest in Bitcoin. However, Bloomberg ETF analyst James Seyffart has shed light on this situation, mentioning that similar patterns are common in the broader ETF market.
- Zero flows occur when there is no significant difference between the supply and demand for an ETF.
- This disparity must be substantial enough to trigger the creation or redemption of ETF shares, which are traded in units.
- Market makers only intervene in the underlying market when the difference surpasses a certain threshold.
“Minor mismatches will see the market makers handle trading of shares just like they would a stock. But it needs to be lopsided—more than a creation unit in either direction for market makers to tap the APs/underlying market,” Seyffart added.
Impact on BTC’s price due to lack of ETF inflows
The absence of inflows into BlackRock’s Bitcoin ETF has had repercussions on BTC’s price, causing it to remain stagnant over the past week. Crypto analyst Skew highlighted that Bitcoin has been trading within a specific range between $72,000 and $61,000, with a point of correction (PoC) or mid-range pivot at $66,000.
- Skew underlined specific price levels of interest for continued observation at the March low of $61,598 and the previous week’s low of $63,498.
- PoC serves as an inflection zone for trends, with backtesting from above or retesting from below providing important contextual information on how the market trades around PoC, often leading to the next move.
Hot Take: What the zero inflows mean for BlackRock’s Bitcoin ETF
BlackRock’s Bitcoin ETF experiencing zero inflows over three consecutive days raises questions about investor sentiment towards digital assets. While some interpret this as a sign of decreasing interest in Bitcoin, experts argue that it is a common phenomenon in the ETF market.
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