The iShares Bitcoin 
$104,435 Trust ETF, which began operations in January 2024, recently garnered significant attention with a net fund inflow of $970.9 million. This figure marks the second-highest inflow since the product’s inception, showcasing a positive momentum distinct from similar products within the industry.
Fund Flows and Market Data
On Monday, the ETF witnessed a new capital inflow of $591.2 million, while rival products experienced notable outflows. Fidelity’s FBTC saw an outflow of $86.9 million, Bitwise’s BITB experienced $21.1 million in fund outflows, and ARK’s ARKB reported an outflow of $226.3 million. In addition to these developments, Bitcoin increased by 7.2% over the last week, trading at approximately $94,900.
Since April 22, the iShares Bitcoin Trust ETF has secured over $4.5 billion in net fund flows, defying prevailing market trends. The shift of investors towards this product, moving away from alternatives, has paved the way for the implementation of different strategies in the market.
Expert Opinions
“Nearly $1 billion flowed into the iShares Bitcoin ETF. The second-highest inflow since January 2024.” – Nate Geraci
“The ETF market is taking two steps forward after one step back; the model we envisioned is materializing.” – Eric Balchunas
Following these remarks, industry experts positively view the increasing investor interest in the product. The growing investor attention indicates a reshaping of capital flows in the market.
In the futures market, the open interest in CME Bitcoin Futures contracts has decreased for four consecutive days, reaching the level of 132,750 Bitcoins. Concurrently, an increase in annualized yield from 5% to 9% in April raises expectations for a potential short-term recovery in open positions. The recovery in basis trade rates suggests an increase in demand.
Overall, investors in the spot market are leaning towards futures to lock in gaps, and the rise in yields demonstrates that this strategy may regain popularity. Market data and expert commentary indicate that the current trend signals vitality and strategic shifts in capital flows.
