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BlackRock’s Bitcoin ETF sees $73 million in inflows, while other funds remain stagnant

For BlackRock, this could be an encouraging sign, suggesting that investors are ready to invest in cryptocurrency-related ETF instruments.

Date: 2024-04-16 Author: Łukasz Michałek
BlackRock’s Bitcoin ETF sees $73 million in inflows, while other funds remain stagnant

BlackRock’sBitcoin ETF has the distinction of being the only bitcoin fund in the United States to see inflows on Monday, while other ETFs saw zero impact or even outflows.

According to data from Farside Investors, the iShares Bitcoin Trust (IBIT) recorded net inflows of $73.4 million on April 15, although the figure was down from the $111.1 million recorded the previous day.

In contrast, the other ETFs, excluding Grayscale, saw no inflows during the period.

GBTC records an outflow of $110 million

Despite the influx of funds into IBIT, it was unable to overcome outflows from the Grayscale Bitcoin Trust (GBTC), from which $110.1 million flowed out on April 15, slowing from the $166.2 million outflow on April 14.

On April 12 and 15, all Bitcoin ETFs combined recorded net outflows of $55.1 million and $36.7 million, respectively. The outflows of funds coincide with a period of volatility for Bitcoin, which saw an 11.6% decline over the week, reaching a price of around $63,410.

Moreover, according to James Butterfill, head of research at CoinShares, global bitcoin investment products faced an outflow of $110 million in the week ending April 12.

Butterfill noted that last week, all combined crypto investment products saw a net outflow of $126 million, although weekly volumes rose from $17 billion to $21 billion.

Bitcoin ‘s recent drop to a three-week low of $61,918 can be attributed to Iran‘s retaliatory April 13 attack on Israel, which caused market turmoil. Additionally, as the halving of the cryptocurrency approaches, when its issuance will be halved, investors are closely monitoring its potential impact on Bitcoin’s price movement.

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Bitcoin soars as Hong Kong approves ETFs

Bitcoin surged 2.8% in 24 hours on Monday, reaching a trading value of more than $66,500 after a number of issuers in Hong Kong announced that they had received approval for ETF funds.

China Asset Management, Bosera Capital and other applicants took to social media platform WeChat (Weixin) to share the news of their approval to list Bitcoin and Ether ETFs in Hong Kong.

The news is significant because analysts predict that mainland Chinese investors could commit $25 billion to potential Hong Kong-listed Bitcoin funds through the Southbound Stock Connect program.

Southbound Stock Connect allows qualified mainland Chinese investors access to eligible Hong Kong-listed stocks. Meanwhile, a significant outflow of Bitcoin from miners can be expected in the months following the upcoming halving.

In a recent note, Markus Thielen, head of research at 10x Research, estimated that Bitcoin miners have the potential to liquidate about $5 billion worth of BTC after halving.

Thielen also stressed that selling pressure from miners could continue for four to six months, leading to a potential sideways movement in the Bitcoin price during this period, similar to what has been seen in previous halving cycles.

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Łukasz Michałek
Łukasz Michałek
Founder of the rapidly developing cryptocurrency channel "Biblia Kryptowalut" on YouTube. He also co-creates the Arena Trading group with Marek. Łukasz is fascinated and passionate about blockchain technology and cryptocurrencies, which constitute the central element of his activity in the cryptocurrency industry.
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