BlackRock Bitcoin ETF Sees 69 Consecutive Days of Inflows During ‘4/20’ Halving Event

Introduction:

Bitcoin’s halving event, coinciding with the meme date “4/20,” brought about intriguing observations in the cryptocurrency market. Amidst this backdrop, BlackRock’s Bitcoin ETF has notably experienced 69 consecutive days of inflows, sparking interest among market observers. 

This article explores the peculiar coincidence surrounding the halving event and the performance of Bitcoin ETFs, shedding light on their sustained inflows despite recent market fluctuations.

Halving Day Coincidence:

Eric Balchunas, an ETF analyst at Bloomberg Intelligence, drew attention to a remarkable coincidence on the day of the halving event. He noted that the largest United States spot Bitcoin ETF recorded 69 consecutive days of inflows on the same day, prompting amusement among industry observers. 

Balchunas humorously described the alignment of these events as “almost too perfect,” adding an element of lightheartedness to the market narrative.

Bitcoin ETFs Performance:

Despite experiencing a slowdown from their peak performance in March, Bitcoin ETFs have displayed resilience, consistently attracting inflows without a single day of outflows. Notably, BlackRock’s iShares Bitcoin Trust (IBIT), the largest ETF by assets under management, has maintained a steady influx of funds. 

Data from UK-based investment firm Farside indicates a tentative resurgence in momentum towards the end of the previous week, with IBIT receiving nearly $30 million in inflows on April 19th, while Fidelity Investments’ ETF garnered approximately $55 million.

Concerns have been raised following recent form 13F filings regarding the penetration of Bitcoin ETFs into the mainstream market. Jim Bianco, founder of macro research firm Bianco Research, expressed disappointment with the first-quarter allocation data, emphasizing the rapid decline in unrealized gains. 

However, Balchunas remains optimistic about the future adoption of these products, likening them to “hot sauce” that investors may gradually add to their portfolios. He highlighted the relatively low number of reported holders of IBIT, accounting for a mere 0.4% of total shares outstanding, indicating potential for increased utilization by investors in the future.