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Highlights
- BlackRock Global Allocation Fund buys 43,000 shares of the iShares Bitcoin ETF.
- This marks the third internal fund from BlackRock to seeks Bitcoin exposure through IBIT ETF.
- Bitcoin ETFs likely to face competition ahead from other crypto ETFs launching over the next year.
Earlier this week, the total inflows into spot Bitcoin ETFs turned positive after major outflows ahead in June. However, the BlackRock Bitcoin ETF IBIT doesn’t seem to be picking up enough momentum as the overall excitement around ETFs seems to fade away. For the fifth consecutive trading day in a row, BlackRock Bitcoin ETF registered zero inflows.
BlackRock Bitcoin ETF Losing Steam?
On Thursday, June 27, the total net inflows in the spot Bitcoin ETFs reached $11.7997 million. Grayscale’s GBTC continues to experience continued to witness outflows at $11.4 million yesterday. With this, the total outflows from GBTC since inception have reached closer to $18.5 billion.
Moreover, major market analysts believe that the zero inflows into BlackRock’s IBIT are not a major cause of concern. This is because BlackRock itself is buying the shares of IBIT through its other funds.
As per the latest SEC filing, BlackRock disclosed the acquisition of Bitcoin for its Global Allocation Fund. This is the third internal fund from BlackRock to have exposure to Bitcoin through the IBIT Bitcoin ETF.
For its Global Allocation Fund, BlackRock reported buying a total of 43,000 shares of the iShares Bitcoin ETF. This comes after similar purchases by BlackRock’s Strategic Global Bond Fund and Strategic Income Opportunities Portfolio in the past.
Also Read: How Much Does BlackRock Hold In Its Bitcoin ETF?
BTC ETFs on the Backseat?
After a massive excitement during the first quarter of the year, institutional interest in Bitcoin ETFs seems to be fading. One major reason is the Fed is willing to continue with higher interest rates for longer than expected. Thus, the excess liquidity from the market is currently drying up fast.
On the other hand, Bitcoin seems to be facing competition with peers like Ethereum (ETH) and Solana (SOL). The spot Ethereum ETF is mostly likely to go live next week around July 2-4. Thus, there’s enough possibility that investors are keeping capital reserved to invest in the new crypto ETF. As reported by Coingape, the spot Ethereum ETFs could attract 15% of the capital as that of the US BTC ETFs.
On the other hand, VanEck filed for a spot Solana ETF on Thursday, raising the competition bar. Although the Solana ETF is unlikely to see approval anytime, the market seems to be gearing up with more options for investors.
Also Read: Robert Kiyosaki Labels Bitcoin ETF ‘Fake’, Here’s Why
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