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As experts in the field of Crypto, cryptocurrency, and blockchain, we are excited to provide you with the latest insights and updates on the industry. Today, we will be discussing the recent developments in the world of Bitcoin exchange-traded funds (ETFs) and their impact on the market.
The iShares Bitcoin Trust (IBIT) managed by BlackRock has recently experienced a significant milestone by seeing zero inflows for the first time since the introduction of Bitcoin exchange-traded funds (ETFs) in the United States. This marks the end of a 71-day streak during which the ETF consistently attracted substantial investments on a daily basis.
The Slowdown in ETF Inflows
It’s not just IBIT that has seen a decrease in investor interest. Other Bitcoin exchange-traded funds (ETFs), such as the Fidelity Wise Origin Bitcoin Fund (FBTC) and the ARK 21Shares Bitcoin ETF (ARKB), have also witnessed a slowdown in inflows. With the exception of these two funds, most Bitcoin ETFs have reported no daily inflows.
Exceptional Performance of IBIT
Despite the recent downturn, IBIT has shown outstanding performance since its launch in January. The ETF has accumulated approximately $15.5 billion in assets under management in just 71 days, surpassing the U.S. Global Jets ETF and ranking among the top 10 ETFs with the longest streaks of daily inflows.
Factors Influencing ETF Inflows
The decrease in ETF inflows has been attributed to various macroeconomic factors, including rising Treasury rates and geopolitical events in the Middle East. Additionally, the first wave of ETF purchases may have peaked, and future inflows could depend on the integration of spot Bitcoin ETFs into larger macro funds.
Grayscale’s GBTC and Future Prospects
Grayscale’s GBTC, a popular investment vehicle for Bitcoin, has been experiencing daily outflows. To address this, Grayscale is planning to introduce a new “mini Bitcoin ETF” with reduced costs to compete with other companies and attract more investors. Despite the recent decline in inflows, there are indications that interest in Bitcoin ETFs could rebound.
Exciting Developments Ahead
Reports suggest that Morgan Stanley is considering allowing its brokers to promote Bitcoin ETFs to clients, potentially leading to increased investments in the funds. Moreover, the bank’s previous forecast of Bitcoin reaching $150,000 by the end of the year remains valid, indicating promising prospects for the future.
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