BlackRock’s IBIT Sees $24.3M Inflow as All Ethereum ETFs Record Outflows

- BlackRock IBIT records net inflow of $24.3 million - Nine Ethereum ETFs experience net outflow of $17.84 million [Unblock Media] On May 6, 2025, the flow of funds for Bitcoin (BTC) and Ethereum (ETH) based spot ETFs within the United States showed a stark contrast. BlackRock's IBIT was the only one to record a net inflow, whereas all nine Ethereum ETFs showed net outflows, highlighting the differing investor sentiment in the cryptocurrency market. On this specific day, the Bitcoin spot ETF market saw a total net outflow of $85.64 million. However, BlackRock's IBIT notably recorded a net inflow of $24.3 million, demonstrating sustained trust from both institutional and individual investors. Several factors contributed to the particular strength of IBIT: Low Expense Ratio: 0.25%, offering a favorable long-term return structure compared to competing products High Liquidity: Highest daily trading volume among ETFs since its launch in January 2024 Institutional Investment Inflow: Strong base of institutional networks by BlackRock Market Share: As of May 2025, IBIT's net assets stood at approximately $17.3 billion, with a cumulative net inflow of $15.6 billion, maintaining the top position Conversely, Grayscale's GBTC continued to experience consistent net outflows even after a structural transition, with approximately $57 million exiting without any inflows on this day. On the same day, all Ethereum spot ETFs saw a total outflow of $17.84 million, with none achieving net inflow. Several complex factors contribute to this bearish trend. Delayed Spot ETF Approvals: The SEC remains reluctant to approve ETH spot ETFs, raising doubts about potential approval within the year Network Uncertainty: Rumors of Pectra upgrade delays at the end of April 2025, as well as increased centralization fears due to spreading Ethereum-based re-staking on EigenLayer Performance Disappointment: While Bitcoin has risen over 35% in 2025, Ethereum's increase has been limited to 12-15%, dampening expectations Market experts analyze that "the Ethereum ETF situation reflects not just yield issues but also regulatory uncertainty and inherent network structural risks." The general investor behavior across the market can be summarized by the keyword "return to stability." With long-term high interest rate trends, Bitcoin is once again being acknowledged for its role as digital gold. Recent data shows that institutional inflows remain active for Bitcoin ETFs, but altcoin-based funds are either stagnant or experiencing outflows. This indicates that investors are increasingly risk-averse towards cryptocurrencies other than Bitcoin. Particularly, the complex derivative structures emerging from the Ethereum ecosystem, such as DeFi and re-staking, act as short-term barriers to entry for investments, reducing relative attractiveness. In conclusion, this capital flow reveals more than just numbers. Investors in the cryptocurrency ETF market prioritize "proven brands" and "simple and clear structures," leading to a concentration of interest in products like IBIT. Meanwhile, without resolving the combined risks of performance, regulation, and structure, Ethereum's recovery is expected to remain challenging.