BlackRock’s IBIT ETF experienced a major setback this week, with zero inflow on Wednesday and Thursday. This is the first time since its launch that the ETF has failed to attract new investment, breaking a 71-day streak. Meanwhile, Grayscale continues to struggle, bringing BlackRock closer to becoming the world’s largest Bitcoin ETF. The Hong Kong market also poses a potential threat to BlackRock’s dominance.
The end of the impressive 71-day streak for the BlackRock Bitcoin spot ETF came on Wednesday, as investors became cautious about the impact of the BTC halving on its price. Over the past ten days, the ETF has seen decreasing inflows, with only one instance of over $30 million in inflows since April 16. Previously, it regularly exceeded $100 million. On April 24, the ETF failed to attract any new investment. Despite this, the 71-day streak is a significant achievement for IBIT, especially considering that it is the only ETF on the list with an underlying asset that is less than two decades old.
To put the magnitude of IBIT’s achievement into perspective, it is worth noting that BlackRock offers over 420 ETFs, and since January, IBIT has accounted for 20% of all investments in BlackRock’s ETFs.
While BlackRock’s ETF may have grabbed the headlines, the rest of the market has not fared well either. On Wednesday, only Fidelity’s FBTC and ARK’s ARKB ETFs recorded inflows, with Grayscale experiencing a significant outflow. The situation worsened the following day, with Fidelity, Ark, and Valkyrie’s BRRR ETF all losing substantial amounts. Combined with Grayscale’s losses, the sector saw a total outflow of $217.6 million, the highest one-day outflow since April 8. Despite its losses, Grayscale’s GBTC remains the market leader, although it has lost $1.2 billion in April alone. However, BlackRock’s IBIT is quickly closing in on Grayscale’s position, with $15.476 billion in assets.
In addition to the internal competition, American ETFs may soon face tough competition from the Asian market as Hong Kong prepares to launch its first Bitcoin spot ETFs. These ETFs are expected to attract capital from Hong Kong and even mainland China, despite the ban on direct investment in cryptocurrencies.
As of now, Bitcoin is trading at $64,400, with a modest gain of 0.55% in the past day.