BlackRock’s iShares Bitcoin Trust (IBIT) has continued to attract significant investor inflows, accumulating a total of $15 billion in net inflows. According to BitMEX Research, on April 11, IBIT experienced its largest daily inflow since April 5, with $192.1 million. Since its launch, the fund has averaged daily inflows of $240.4 million.
Valkyrie’s Bitcoin Strategy ETF (BRRR) also saw positive inflows, with $8.4 million on April 11, marking its largest daily inflow since March 26 and bringing its total net inflows to $467.5 million.
However, total inflows for spot Bitcoin ETFs were dampened by Grayscale’s GBTC, which experienced a net outflow of $124.9 million, bringing its total net outflows to $16.1 billion. Nonetheless, GBTC still holds an impressive 314,151 BTC, as it was already the largest Bitcoin fund before its conversion into a spot ETF.
BlackRock’s IBIT, in comparison, now holds 269,310 BTC after significant inflows since its launch.
These inflows reflect the growing demand for Bitcoin, which has been described as “growing at an unprecedented pace.” Additionally, the supply of Bitcoin held on exchanges has reached record lows, suggesting a potential supply shock that may drive prices higher.
Demand for Bitcoin has become more crucial than its supply, with data from CryptoQuant showing that demand from permanent holders has surpassed issuance for the first time. The data also reveals that known exchange addresses currently hold only 9.8% of Bitcoin’s total circulating supply, indicating a decline in actively trading investors and a shift towards long-term holding strategies.
With diminishing supply on exchanges, the lower availability of Bitcoin could result in a potential supply shock if demand suddenly surges. This occurs when the readily available supply on exchanges sharply decreases while demand increases.
These developments indicate a bullish trend for Bitcoin, with the iShares Bitcoin Trust and other spot Bitcoin ETFs continuing to attract significant investor interest.