u.today
BlackRock’s Bitcoin exchange-traded fund (ETF) has recorded zero inflows for the past two days. Institutional investors have lost their appetite for Bitcoin exposure despite the ongoing bull market in the broader cryptocurrency space.
Institutional caution amid market volatility
Data from Farside Investors reveals that BlackRock (IBIT) last recorded an inflow on Nov. 25. Since then, the ETF giant has not registered interest from institutional players. This development has shocked many, given that BlackRock’s performance has often supported the ETF market in staying in the green zone.
Market trend observers have attributed the decreased interest to market volatility amid the ongoing bull run. Institutional investors might have adopted a cautious approach because Bitcoin’s price fluctuations have left them guessing.
Besides BlackRock, other players on the ETF market have remained strong. Only Bitwise’s BITB and Grayscale’s BTC registered two consecutive days of inflows. Bitwise had $6.5 million and $48 million inflows on Nov. 26 and 27, respectively, while Grayscale recorded $4.8 million and $12 million.
Interestingly, despite positive inflows from the duo, it proved insufficient to keep the Bitcoin ETF market in the green on Nov. 26. The market suffered a net outflow of $122.8 million.
Surprising shift for BlackRock
BlackRock, known for large inflows, could have helped prevent a negative flow if not for the market's existing caution. BlackRock’s Bitcoin ETF performance recently hit a significant milestone compared to other products on the ETF market. IBIT, within 211 days, surpassed $40 billion in total assets.
Earlier in November, IBIT had shocked the ETF market when its trading volume recorded $1 billion in just 20 minutes. These performances have been impacted by the current market volatility and caution adopted by investors.
Analysts say this caution might persist until a significant shift occurs in the broader cryptocurrency space. As of this writing, Bitcoin is trading for $95,269.74, a 0.7% increase in the last 24 hours. BTC had reached a high of $97,357 in previous trading.