• 26 May, 2024
News

Bitcoin ETFs Make History: BlackRock’s iShares Sees $0 Inflows

BlackRock iShares Bitcoin Trust (IBIT) has seen its first day of $0 inflows since Bitcoin ETFs were established in the United States in January. Since its inception, IBIT has continually attracted multimillion-dollar contributions, totaling approximately $15.5 billion in just 71 days.

According to Farside statistics, BlackRock’s Bitcoin ETF inflow run ended on April 24 when IBIT registered no inflows.

BlackRock will waive a part of the Sponsor’s Fee for the first 12 months beginning January 11, 2024, equivalent to 0.12% of the Trust’s net asset value for the first $5.0 billion in assets. If the fund hits $5.0 billion before the 12-month mark, the charge will be 0.25%. All investors will be charged the same Sponsor’s Fee, a weighted average of those fee rates. 

Other Bitcoin ETFs also experienced a slowdown. Out of the 11 Bitcoin ETFs in the US, only Fidelity Wise Origin Bitcoin Fund (FBTC) and ARK 21Shares Bitcoin ETF (ARKB) saw inflows of $5.6 million and $4.2 million, respectively.

Furthermore, the Grayscale Bitcoin Trust ETF (GBTC) continues to hemorrhage. On April 24, GBTC reported $130.4 million in outflows, which resulted in a net outflow of $120.6 million for the spot Bitcoin ETFs for the day. Though a zero inflow is the first for IBIT, it is common among other ETF participants. The Bitcoin ETF market in the U.S. has accumulated a net $12.3 billion in Bitcoin. 

Bitcoin ETF market players are submitting applications for Ether ETFs in the United States, but the Securities and Exchange Commission (SEC) has postponed clearance decisions for some of them. To provide adequate review, the SEC has extended the time frame for approving or disapproving proposed rule amendments.

In a notification dated April 23, the SEC stated that it had extended the deadline for approving or disapproving a proposed rule change that would allow the Cboe BZX Exchange to list and trade Franklin Ethereum Trust shares. The commission will have until June 11 to reconsider its judgment on the spot ETH ETF, giving it a further 45 days.

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