BlackRock’s IBIT Sees Inflows for First Time in 3 Weeks, Attracts $15M

BlackRock’s IBIT spot Bitcoin exchange-traded fund (ETF) recorded its first daily net inflow since August 26, attracting $15.8 million in new investments.

The inflow on Monday broke a three-week drought during which the fund experienced no positive flows, according to data from SoSoValue.

The period included 11 trading days of zero activity and two days of net outflows on August 29 and September 9.

Other Funds Also See Inflows

Other major spot Bitcoin ETFs also saw positive inflows on Monday.

Fidelity’s FBTC brought in $5.1 million, Franklin Templeton’s EZBC attracted $5 million, and VanEck’s HODL fund gained $4.9 million.

In contrast, Grayscale’s GBTC, a higher-fee converted spot Bitcoin ETF, saw net outflows of $20.8 million, reversing a brief inflow of $6.7 million from last Friday.

However, Grayscale’s smaller Bitcoin ETF, BTC, reported $2.8 million in net inflows, partially offsetting the losses.

Despite the recent slowdown in inflows, BlackRock’s IBIT continues to lead in overall net inflows for spot Bitcoin ETFs.

Since January, it has accumulated a staggering $20.9 billion in inflows.

Fidelity’s FBTC ranks second, bringing in $9.6 billion.

Meanwhile, Grayscale’s GBTC has seen over $20 billion in net outflows, reflecting investors’ movement toward lower-fee alternatives.

Monday’s combined inflows across the sector amounted to $12.8 million, a sharp decline from Friday’s $263.2 million.

Trading volume also decreased significantly, falling from $1.8 billion to $1.1 billion.

While Bitcoin-focused ETFs had a mixed performance, Ethereum ETFs faced further challenges.

Spot Ethereum ETFs experienced net outflows of $9.4 million on Monday, a reversal from the $1.5 million in inflows reported last Friday.

On September 16, the total net outflow of Ethereum spot ETF was $9.5143 million. Grayscale ETF ETHE had an outflow of $13.8321 million, and BlackRock ETF ETHA had an inflow of $4.1567 million. https://t.co/Tvs2oCSxTg

— Wu Blockchain (@WuBlockchain) September 17, 2024

BlackRock’s ETHA led the positive side, adding $4.2 million in inflows, followed by Grayscale’s mini Ethereum ETF with $2.3 million.

However, Grayscale’s main ETHE fund saw $13.8 million in net outflows, and Bitwise’s ETHW also lost $2.1 million.

The Ethereum ETF market has been more volatile since its inception in July.

Spot Ethereum ETFs have experienced total net outflows of $590.8 million, dominated by Grayscale’s ETHE, which alone has seen $2.7 billion leave the fund.

Other spot Ethereum ETFs have fared better, collectively bringing in $2.1 billion in net inflows.

Crypto Products Rebound with $436M Inflows

Digital asset investment products have seen a turnaround, with inflows reaching $436 million following a prolonged period of outflows totaling $1.2 billion.

The reversal is influenced by shifting market expectations, particularly the potential for a 50-basis-point interest rate cut on September 18.

Notably, Bitcoin products attracted the majority of investment, with $436 million in inflows following a 10-day streak of outflows amounting to $1.18 billion.

In contrast, short-Bitcoin flows saw a reversal, with $8.5 million in outflows after three consecutive weeks of inflows.

Bitcoin is currently trading at $58,750, flat over the past 24 hours but down 20% over the past six months.

Despite this, the cryptocurrency remains 39% up year-to-date, supported in part by these ETFs’ stabilizing effect on the market.