BlackRock’s iShares Bitcoin Trust (IBIT), the world’s largest spot Bitcoin ETF, finally saw a return of positive net inflows on September 16th. This marks the end of a three-week dry spell, with the last inflow recorded on August 26th.
Monday’s inflow of $15.8 million signifies renewed investor interest in Bitcoin through the ETF format. However, this pales in comparison to the significant inflows seen earlier, suggesting a potential slowdown in overall trading activity. According to The Block, trading volume also dropped from $1.8 billion on Friday to $1.1 billion on Monday.
Other major spot Bitcoin ETFs like Fidelity’s FBTC ($5.1 million), Franklin Templeton’s EZBC ($5 million), and VanEck’s HODL ($4.9 million) also experienced net inflows on Monday. Notably, Grayscale’s GBTC, a higher-fee converted share product, returned to net outflows despite seeing rare net inflows of $6.7 million on Friday.
Despite the recent lull, BlackRock’s IBIT continues to dominate the spot Bitcoin ETF landscape. Since its launch in January, IBIT has attracted a staggering $20.9 billion in net inflows, far exceeding its competitors.
Ethereum ETFs See Outflows Resume
While Bitcoin ETFs experienced a positive development, spot Ethereum ETFs returned to net outflows on Monday, totaling $9.4 million. BlackRock’s iShares Ethereum Trust (ETHA) led the inflows with $4.2 million, but Grayscale’s main ETHE product saw significant outflows of $13.8 million.
In contrast to Bitcoin ETFs, spot Ethereum ETFs have seen overall net outflows since their July launch, dominated by Grayscale’s ETHE product. However, other Ethereum ETFs have generated net inflows, partially offsetting the losses. Trading volume for spot Ethereum ETFs also declined on Monday, dropping to $128 million from $149 million on Friday.
Combating Conspiracy Theories
Recent conspiracy theories have questioned the legitimacy of spot Bitcoin ETFs, particularly BlackRock’s IBIT and its custodian, Coinbase. Bloomberg ETF analyst Eric Balchunas dismissed these claims, suggesting that Bitcoiners are seeking a scapegoat for the recent selling pressure.
Balchunas emphasizes the strict regulations surrounding the ETF industry, making it highly unlikely for custodians like Coinbase to manipulate the underlying assets. He draws parallels to similar conspiracy theories surrounding gold-backed ETFs and asserts that such accusations lack evidence.
Also Read: BlackRock Bitcoin ETFs Prevent Massive BTC Crash, Miners Sell 30,000 BTC In Days
Bitcoin is currently trading around $58,750, remaining relatively flat over the past 24 hours. While down from its highs, Bitcoin is still up 39% year-to-date. Balchunas suggests that native Bitcoin holders, not the ETFs themselves, might be responsible for the recent selling pressure.
The coming days will be crucial in understanding whether Monday’s inflow marks a true resurgence of interest in spot Bitcoin ETFs or a temporary blip. It will be interesting to see if trading volumes pick up and if other ETFs can sustain their recent positive inflows.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
