Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
BlackRock’s Bitcoin ETF listed on Nasdaq recently reported massive outflows, seeing $332 million leaving its public fund tracking Bitcoin last Thursday.
According to experts, this was the largest single-day outflow since the fund went live, almost a year ago now. Its previous largest outflows were recorded in late December when the figure reached $188 million, but this time, the amount leaving the fund was nearly doubled.
IBIT blew up after it was created following the US SEC’s approval of spot Bitcoin ETFs, exceeding $53 billion in net assets. However, it has been recording consistent outflows since December 20. Data suggests that daily outflows ranged from $17 million to Thursday’s peak of $332 million, which is a massive figure to be moved in a day from a single fund.
Data also shows that the outflow set a record for three consecutive trading days of withdrawals, resulting in 392.6 million in the past week. In spite of this, IBIT is still the top performer, and the third in terms of 2024 US ETF inflows, seeing $37.2 billion.
The only funds that outperformed it include the iShares Core S&P 500 ETF ($89 billion) and the Vanguard 500 Index Fund ($116 billion).
Bitcoin Outflows Do Not Necessarily Suggest Negative Outlook
Typically, large outflows are taken as a signal of waning confidence in the ETF, and some are certainly taking the IBIT’s recent performance as such a signal. However, they can also be a result of investors rebalancing their portfolios, securing profits, and alike, especially with expectations of a major rally in 2025.
In other words, while the figure is quite massive, it doesn’t necessarily reflect a negative outlook on the fund or even the broader BTC market.
Especially since BTC ETFs from Bitwise, Fidelity, and Ark 21 Shares bucked the outflow trend on January 2, recording major inflows of $48.3 million, $36.2 million, and $16.5 million, respectively.
Bitcoin itself saw a strong price dip to $93k but has since then recovered to its current $99k figure.
