The Bitcoin (BTC) community is becoming increasingly worried about BlackRock’s spot Bitcoin exchange-traded fund (ETF) as it has halted inflows for several consecutive days, marking the first time since its launch.
BlackRock’s iShares Bitcoin Trust (IBIT), which is the fastest-growing spot Bitcoin ETF in the United States, has not seen any inflows since April 24. The fund has maintained its holdings of 274,462 BTC over the past four trading days, according to data from IBIT’s official page.
This halt in inflows by BlackRock’s IBIT, which had previously consistently attracted new investments on a daily basis, has raised concerns among crypto observers. Some believe that this event is not a positive sign for investors. On the other hand, there are industry activists who argue that BlackRock’s 71-day inflow streak was more extraordinary than the past four days with zero inflows.
Thomas Fahrer, co-founder of Apollo, explained on X that for new bitcoins to enter or exit an ETF, there needs to be a significant enough difference between supply and demand, which would require market makers to organize the creation or destruction of creation units.
BlackRock’s period of zero inflows coincides with other ETF issuers, including the largest seller Grayscale Investments, experiencing outflows from spot Bitcoin ETFs.
Data from HODL Capital shows that on April 20, the total daily outflows from 10 spot Bitcoin ETFs in the United States amounted to 823 BTC. On that day, the Grayscale Bitcoin Trust ETF (GBTC) held 297,117 BTC, which is approximately 52% lower than its initial holdings on January 11. In comparison, BlackRock’s IBIT currently holds 274,462 BTC, just slightly more than what Grayscale’s GBTC holds.
Despite the slowdown in spot Bitcoin ETF inflows in the United States, the total holdings of BTC ETFs have still increased by approximately 33.1% since January 11. As of April 29, the total BTC ETF holdings amounted to 831,424 BTC.
In other news, a woman has been accused of a $6 billion scam, and there is a loophole in China for Hong Kong Bitcoin ETFs, according to Asia Express magazine.