The popularity of Bitcoin in trading funds is taking a "warrior's break": Powell's statements put the brakes on, but #BlackRock is taking center stage!
A sudden slowdown hits U.S. Bitcoin spot fund inflows! After a wave of frenzied activity, it saw a noticeable calm last week, and the reason? It seems investors preferred to exercise caution... and part of the blame lies on the "hawkish" statements from Federal Reserve Chairman Jerome Powell regarding future interest rates. As if the Fed's policy cast a shadow over the Bitcoin arena, directly affecting the associated exchange-traded funds.
The numbers speak of a clear decline: the funds attracted only about $603.74 million between May 12 and 16, a sharp drop of over 35% compared to the previous week which recorded $934 million!
But don’t let this weekly slowdown fool you... interest in Bitcoin funds is still strong and attracting liquidity!
In the battle of inflows, BlackRock's #IBIT fund emerged as the undisputed champion, attracting $841.7 million in inflows alone, confirming its position as a key player in this market and a magnet for confident investors. Meanwhile, other funds like Grayscale (GBTC) and VanEck (HODL) brought in very modest inflows ($39.8 million and $7.3 million respectively).
On the other hand, some funds faced headwinds! Fidelity's #FBTC fund saw liquidity outflows of $122.2 million, while both #GBTC and Grayscale and #ARKB from ARK 21Shares lost about $70 million in outflows each. Even funds like BITB and BTCO recorded net redemptions, albeit modest, while other funds saw little to no movement.
However, despite this "warrior's break," May remains strong! The total inflows have surpassed $2.64 billion so far, a figure very close to the impressive performance of April ($2.97 billion). More importantly, since its historic launch in January 2024, total net inflows have exceeded the massive $41 billion mark! This clearly confirms the huge and ongoing growth of Bitcoin funds traded in the American arena, and that the weekly slowdown is just a temporary pause in the growth journey.
