BlackRock’s Bitcoin ETF Sees First Drop in Inflows: What Does This Mean for BTC Price?

After 71 days of consecutive inflows, BlackRock’s iShares Bitcoin Trust (IBIT) has witnessed no inflows for the very first time. This development comes as a surprise, considering that BlackRock’s IBIT ETF still holds the largest cumulative inflow in the market, with a staggering $15.4 billion. The lack of inflows into BlackRock’s spot Bitcoin ETF could be attributed to various macroeconomic factors.

One possible reason for the dip in inflows could be the recent increase in US core durable goods orders, which rose by 2.6% in March. Additionally, investor expectations of an interest rate cut from the Federal Reserve are diminishing as inflation remains above the Fed’s 2% target. These economic indicators may have influenced investors to hold back on further investments in BlackRock’s BTC ETF.

The question on many investors’ minds is whether Bitcoin (BTC) will see a decline in price following the lack of inflows into BlackRock’s BTC ETF. BTC reached an all-time high of $73,737 in March, fueled by the US SEC’s historic approval of 11 spot BTC ETFs, which were met with immediate success. A decrease in ETF inflows could potentially have a negative impact on BTC’s price.

However, amidst the decline in inflows into BlackRock’s spot Bitcoin ETF, there is a growing interest in Hong Kong’s spot BTC and Ethereum ETFs. Financial regulators in Hong Kong have announced that these ETFs will commence trading on April 30, 2024. The launch of these ETFs in Hong Kong could help offset the falling inflows in BlackRock’s BTC ETF.

Furthermore, Bitcoin recently underwent its halving cycle, a process that many consider to be bullish as it reduces the supply of the asset. Historically, the crypto market has rallied after every BTC halving cycle, leading many analysts to anticipate a market rally in the near future. According to CoinCodex, Bitcoin is projected to reach a new all-time high of $74,172 on May 1, 2024, with further gains expected throughout the month, culminating in a price of $85,033 on May 22, 2024.

In conclusion, while the lack of inflows into BlackRock’s BTC ETF may raise concerns among investors, the launch of new ETFs in Hong Kong and the positive outlook for Bitcoin’s price following its halving cycle suggest that the market may still see significant growth in the coming months. Investors will be closely monitoring these developments to make informed decisions about their cryptocurrency investments.