BlackRock’s iShares Bitcoin Trust (IBIT) has faced a significant setback, recording its largest outflow since the fund’s inception just a year ago. On January 2, the trust experienced an outflow of $330.8 million, equating to over 3,500 Bitcoin (BTC). This figure surpasses the previous record of $188.7 million set on December 24, highlighting a troubling trend.
The substantial outflow follows a market pause on New Year’s Day and marks the third consecutive trading day of withdrawals for the Bitcoin trust, indicating growing investor concerns. Over the past week alone, the iShares Bitcoin Trust has seen total outflows of $391 million, raising questions about its future performance in a volatile market.
Despite this recent downturn, the iShares Bitcoin Trust still ranks among the top three exchange-traded funds (ETFs) in the United States for the year, attracting a total of $37.2 billion in inflows. This data reflects the broader ETF market, with the Vanguard 500 Index Fund leading the pack with $116 billion, followed closely by the iShares Core S&P 500 ETF with $89 billion in inflows.
Speculation remains regarding the future of Bitcoin ETFs, with some analysts suggesting a potential turnaround in 2025. Predictions include the possibility of combined spot Bitcoin and Ether ETFs and in-kind creation options for these products, suggesting a more vibrant market ahead.
Contrasting the outflows at BlackRock, other crypto funds such as Bitwise, Fidelity, and Ark 21Shares reported inflows on January 2, amounting to $48.3 million, $36.2 million, and $16.5 million, respectively. Meanwhile, Grayscale’s Bitcoin Mini Trust saw minor inflows, although the larger GBTC fund experienced outflows of $23 million. This divergence highlights a shifting landscape in cryptocurrency investments as market dynamics continue to evolve.
