BlackRock, Invesco Bitcoin ETF Experiences Zero Flows – Should Investors Be Worried?

Key Takeaways

• BlackRock and Invesco Bitcoin ETFs reported zero inflows on May 13. 
• A state pension fund invested in IBIT, showing institutional interest.
• Meanwhile, Hong Kong’s crypto ETF flows reveal contrasting trends.

Bitcoin ETFs from BlackRock and Invesco recently reported zero inflows, potentially raising concerns among investors about their market health. 

However, a state pension fund’s investment in IBIT highlights growing institutional interest, suggesting that the current volatility may be a temporary phase. 

Bitcoin ETF Inflows and Outflows 

On May 13, the inflows and outflows from Bitcoin ETFs led to  total mere net flows of $66m. BlackRock’s IBIT reported zero flows on the day just like on May 8 and May 7 in the past few days.

In contrast, FBTCsaw inflows of $38.6m, and BITB had $20.3m in its kitty. Other ETFs like ARKB, BTCO, EZBC, BRRR, BTCW, and GBTC also reported zero inflows, while HODL recorded inflows of $7.1m.

On April 25, the total outflows were -$217.6m, with IBIT at 0. April 26 saw total outflows of -$83.6m, again with IBIT at 0. 

April 29 continued the trend with total outflows of =$51.6m, and IBIT remained at 0. April 30 had total outflows of -$161.6m, and IBIT again reported zero inflows. 

May 1 saw significant outflows of -$563.7m, with IBIT at -$36.9m. Therefore, the current week paints a less dire picture. 

Slight recovery started on May 2 with total inflows of $34.4m, though IBIT still had no inflows. May 3 showed positive activity with total inflows of $378.3m, including 12.7 for IBIT. The following days up to May 10 saw mixed results, with May 6 showing $217m in total inflows and IBIT at $21.5m, but other days like May 7 and May 10 showed just outflows.

State Pension Fund Investment in IBIT

Despite some concerns about the zero inflows, there is positive news for IBIT. Bloomberg’s Eric Balchunas reported that a state pension fund invested in IBIT during the first quarter of 2024. This is noteworthy because institutional investors typically wait for an ETF to gain more liquidity before making substantial investments. This early investment by a significant institution indicates confidence in IBIT’s prospects and suggests that more large investors may follow suit despite the current volatility. 

Meanwhile, the performance of Hong Kong’s crypto ETF flows just saw outflows on May 13. The total outflows for BTC ETFs were significant, with Bosera reporting -$7.4m, AMC ($15.5m), and Harvest ($9.8m), leading to a subtotal of -$32.7m. For ETH ETFs, Bosera had outflows of -$0.6m, AMC ($3.0m), and Harvest ($3.0m), resulting in a subtotal of ($6.6m). The total outflows for Hong Kong’s crypto ETFs on May 13 were ($39.3m), indicating a challenging day for these funds as per Farside data . 

Challenging Market With Institutional Interest 

Despite the recent zero inflows reported by BlackRock and other Bitcoin ETFs, the news of a state pension fund investing in IBIT is a positive sign for investor interest. 

The institutional interest suggests confidence in the long-term potential of Bitcoin ETFs, even amid current market volatility. As institutional investors tend to move in herds, this early investment could pave the way for more significant inflows in the future in Bitcoin. 

Comparing this with Hong Kong’s crypto ETF market, which also experienced outflows, this could be a temporary downward phase rather than a long-term concern.

About the Author

Shraddha Sharma

Shraddha has around five years of experience as a financial journalist, focusing largely on the Asian markets. Starting her career in Mumbai, India, as a news trainee and producer, she quickly found her niche in crypto. She is keen on learning how emerging technologies affect the broader markets and enjoys explaining complex financial ideas in a way that's easy to understand.

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