BlackRock’s bitcoin ETF faces challenges amid stock correlation
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Ibit’s rapid rise meets new headwinds
Blackrock’s ishares Bitcoin trust ETF(Ibit) has achieved remarkable growth since its launch, reaching $50 billion in a year, a milestone that took voo six years. Despite this, Bloomberg senior ETF analyst Eric Balchunas warns that Bitcoin’s strong correlation with equities may limit Ibit’s continued adoption, especially if stock markets enter a downturn.
Institutional interest grows, but momentum slows
Ibit remains the largest Bitcoin ETF, holding 2.98% of the total btc supply, and has attracted major institutional investors like Abu Dhabi’s Mubadala sovereign wealth fund, which recently invested $436 million. According to recent 13f filings, Ibit has 1,100 institutional holders, smashing previous records for a first-year etf. However, Bitcoin EFTs are now facing net outflows, with last week seeing $585 million in redemptions, a trend that continued with $129 million in outflows on february 18.
Fed policy and inflation concerns weigh on sentiment
Federal Reserve Chair Jerome Powell’s rejection of imminent rate cuts has dampened risk appetite, impacting bitcoin EFTs. Ongoing inflation concerns have also led some investors to reduce exposure to speculative assets, contributing to the recent slowdown in inflows.
Trading outlook
While institutional adoption remains a long-term bullish factor, ibit’s near-term outlook hinges on macroeconomic conditions and bitcoin’s ability to decouple from stock market trends. Traders are watching key btc price levels, with support at $48,500-$50,000 and resistance at $53,500-$55,000. A breakout could reignite etf inflows, while further stock market weakness may pose downside risks.
Blackrock’s ishares Bitcoin trust ETF(Ibit) has achieved remarkable growth since its launch, reaching $50 billion in a year, a milestone that took voo six years. Despite this, Bloomberg senior ETF analyst Eric Balchunas warns that Bitcoin’s strong correlation with equities may limit Ibit’s continued adoption, especially if stock markets enter a downturn.
Institutional interest grows, but momentum slows
Ibit remains the largest Bitcoin ETF, holding 2.98% of the total btc supply, and has attracted major institutional investors like Abu Dhabi’s Mubadala sovereign wealth fund, which recently invested $436 million. According to recent 13f filings, Ibit has 1,100 institutional holders, smashing previous records for a first-year etf. However, Bitcoin EFTs are now facing net outflows, with last week seeing $585 million in redemptions, a trend that continued with $129 million in outflows on february 18.
Fed policy and inflation concerns weigh on sentiment
Federal Reserve Chair Jerome Powell’s rejection of imminent rate cuts has dampened risk appetite, impacting bitcoin EFTs. Ongoing inflation concerns have also led some investors to reduce exposure to speculative assets, contributing to the recent slowdown in inflows.
Trading outlook
While institutional adoption remains a long-term bullish factor, ibit’s near-term outlook hinges on macroeconomic conditions and bitcoin’s ability to decouple from stock market trends. Traders are watching key btc price levels, with support at $48,500-$50,000 and resistance at $53,500-$55,000. A breakout could reignite etf inflows, while further stock market weakness may pose downside risks.