BlackRock IBIT Bitcoin ETF Snaps Historic 71-Day Inflow Streak as BTC Slides Below $65,000

The cryptocurrency market witnessed a significant milestone on April 24, 2024, as BlackRock’s iShares Bitcoin Trust (IBIT) recorded zero net inflows for the first time since its launch on January 11, bringing an end to one of the most remarkable streaks in exchange-traded fund history. The development coincided with a sharp decline in Bitcoin’s price, which fell as much as 5.2% during the day to trade around $64,277.

TL;DR

• BlackRock’s IBIT Bitcoin ETF recorded zero net inflows on April 24, ending a historic 71-day consecutive streak
• The fund accumulated approximately $15 billion in assets during its 71-day run, reaching the top 10 all-time ETF inflow streaks
• Bitcoin fell as much as 5.2% on the day, trading at approximately $64,277
• Overall Bitcoin ETFs saw a net outflow of $120 million, driven primarily by Grayscale’s $130 million in outflows
• Fidelity’s FBTC and Ark Invest recorded modest inflows of $5.6 million and $4.2 million, respectively

A Streak for the Record Books Comes to an End

BlackRock’s IBIT had been on a tear since its January 11 debut, attracting capital every single trading day for 71 consecutive sessions. The streak placed IBIT among the top 10 longest inflow streaks in ETF history, a remarkable achievement for a product that had been on the market for barely three months. Bloomberg Intelligence senior ETF analyst Eric Balchunas noted that the longest streak on record belonged to JEPI at 160 days, meaning BlackRock’s Bitcoin fund was within striking distance of the top five before the run finally ended.

According to data from Farside Investors, April 24 marked the first day when IBIT saw zero net flows — not an outflow, but simply no new capital entering the fund. While a single day of flat flows might seem inconsequential in isolation, the event carried outsized symbolic weight given the narrative of relentless institutional demand that had propelled Bitcoin to new heights in the weeks surrounding its fourth halving.

Broader ETF Complex Shows Cracks

The picture across the entire Bitcoin ETF complex was decidedly more negative. Net outflows across all spot Bitcoin ETFs totaled $120 million on April 24, with the bulk of the damage coming from Grayscale’s GBTC, which bled $130 million. Grayscale had been a consistent source of outflows since converting its Bitcoin Trust to an ETF, as investors exited the high-fee product in favor of lower-cost alternatives.

Among the other funds, only Fidelity’s Wise Origin Bitcoin Fund (FBTC) and Ark Invest’s ARKB managed to attract positive flows, recording $5.6 million and $4.2 million in inflows, respectively. All remaining spot Bitcoin ETFs posted zero net flows for the day, painting a picture of broad-based investor caution.

Post-Halving Uncertainty Weighs on Sentiment

The cooling ETF demand came at a delicate moment for the Bitcoin market. Just days earlier, on April 19-20, Bitcoin had completed its fourth halving event, reducing the block reward from 6.25 BTC to 3.125 BTC per block. While halvings have historically been followed by significant price appreciation over longer time horizons, the immediate aftermath tends to be marked by heightened volatility and uncertainty as the market adjusts to the reduced supply issuance.

A Bitfinex Alpha report published in the days surrounding the halving noted that daily Bitcoin supply from mining was expected to decline from approximately $40-50 million to around $30 million, factoring in both active and dormant supply as well as miner sales. The report also highlighted that miners had preemptively sold portions of their reserves ahead of the halving, leading to a sharp decline in Bitcoin transfers to exchanges and effectively spreading selling pressure over a longer period.

Supply Squeeze Meets Cooling Demand

The simultaneous reduction in new Bitcoin supply from the halving and the first signs of ETF demand fatigue created a fascinating supply-demand dynamic. On one hand, the halving’s supply shock — removing approximately 450 BTC per day from miner rewards — was a fundamentally bullish catalyst that had attracted significant institutional capital into the ETF products. On the other hand, the market’s immediate response suggested that the post-halving euphoria was giving way to a more measured assessment of near-term price prospects.

The constrained supply from the halving, combined with the structural demand created by spot Bitcoin ETFs, remained a powerful long-term combination. However, April 24 served as a reminder that even the most powerful narratives in financial markets experience temporary setbacks, and that the path from halving to new all-time highs is rarely a straight line.

Why This Matters

The end of BlackRock’s 71-day IBIT inflow streak marks a psychological inflection point for the Bitcoin ETF narrative that has dominated market discourse throughout early 2024. While a single day of zero flows does not negate the approximately $15 billion in cumulative inflows that the fund attracted during its historic run, it signals that the initial wave of pent-up institutional demand may be beginning to normalize. For investors tracking the interplay between Bitcoin’s supply shock from the halving and ETF-driven demand, April 24 provides the first real data point suggesting that the demand side of the equation is not inexhaustible — a critical consideration for price modeling in the months ahead.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk, and readers should conduct their own research before making investment decisions.