BlackRock Bitcoin ETF, Fund Inflows Halted…Has Institutional Buying Ended?

▲ BlackRock Bitcoin/ChatGPT generated image ©

The 9-day streak of fund inflows into BlackRock's spot Bitcoin ETF has ended, indicating that institutional buying has entered a temporary pause.

According to investment media TradingNews on April 28 (local time), the iShares Bitcoin Trust ETF (IBIT) closed at $43.27, down 0.67% from the previous session. As Bitcoin (BTC) fell to $76,362, the U.S. spot Bitcoin ETF market ended its 9-day streak of $2.1 billion in net inflows and shifted to $263.18 million in net outflows.

The fund outflow was most prominent from Fidelity's FBTC, which saw $150.4 million withdrawn. Grayscale's GBTC recorded a net outflow of $46.63 million, and ARK 21Shares' ARKB saw $43.3 million in net outflows. In contrast, BlackRock's IBIT showed a flat trend with neither inflows nor outflows, maintaining its assets under management (AUM) at $63.14 billion.

The media interpreted this outflow as short-term profit-taking and position adjustments rather than a structural exit by institutions. The total trading volume for spot Bitcoin ETFs remained active at $1.93 billion, and IBIT's stability was seen as a sign of the long-term allocation nature of BlackRock's client base. Year-to-date, IBIT has accumulated $3.3 billion in inflows.

Bitcoin's weakness was also linked to leverage liquidations. Bitcoin fell below $77,000, and approximately $43 million worth of long position liquidations increased selling pressure. However, the media viewed this not as a collapse in spot supply and demand but as a typical liquidity event. Key support levels were identified between $73,000 and $75,000 on the downside, while a recovery to $80,000 was presented as a critical condition for renewed ETF fund inflows on the upside.

From a supply and demand perspective, analysis also suggested that the institutional buying logic remains alive. Strategy alone purchased 56,235 BTC in April, and global ETFs added 34,552 BTC during the same period. This significantly exceeded the 11,829 BTC supplied by mining in April, calculating that institutional demand outstripped new supply by approximately 7.7 times.

TradingNews anticipated that IBIT would likely trade within the $42-$44 range in the short term. $42 was suggested as a buying zone, a break below $40 as a bearish signal, and a break above $46 would open the possibility of a recovery to $50-$55. However, with the Federal Open Market Committee (FOMC), Hormuz risk, and a strong dollar remaining short-term variables, the media maintained a cautious short-term outlook and a buy-on-dip perspective for the medium to long term.

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