Bitcoin ETF Performance: BlackRock IBIT Sees $332.6M in Outflows Amid Bitcoin Price Shift

Bitcoin ETF Performance: BlackRock’s IBIT Suffers $332.6M Outflows While Other Bitcoin Funds Gain

Bitcoin ETF Performance– BlackRock’s iShares Bitcoin Trust ETF (IBIT) has experienced a significant setback with net outflows totaling $332.6 million on Thursday, marking its largest daily outflow since its launch last year. This sharp decline in funds surpasses the previous record of $188.7 million set on Christmas Eve, indicating a potential shift in institutional sentiment toward the cryptocurrency market. Despite this, IBIT remains the largest spot Bitcoin ETF, with $36.9 billion in total net inflows and assets nearing $53.5 billion.

Reasons Behind the Large Outflows from IBIT

Neal Wen, the Head of Global BD at Kronos Research, explained that institutional investors often rebalance their portfolios to align with asset allocation targets. The large outflows from BlackRock’s IBIT may reflect such activity, particularly in response to Bitcoin’s price movements or broader market conditions, Wen noted. The movements in Bitcoin’s price, especially after the cryptocurrency reached its all-time high of $108,135 in mid-December, may have influenced the recent outflows from IBIT.

This development comes amidst a period of underperformance for the Bitcoin ETF, as the daily inflows have been weaker in comparison to the substantial inflows seen earlier in December. While IBIT did experience remarkable success earlier in the month, the current market dynamics appear to be affecting its performance.

Other Bitcoin ETFs Continue to Attract Inflows

Despite the outflows from IBIT, several other spot Bitcoin ETFs are still attracting investor interest. Bitwise’s BITBreported net inflows of $48.3 million, while Fidelity’s FBTC saw $36.2 million in inflows. Other Bitcoin ETFs such as Ark Invest and 21Shares’ ARKB, VanEck’s HODL, and Grayscale Mini Bitcoin Trust also experienced positive net inflows on Thursday. In total, the U.S. spot Bitcoin ETFs saw $242.3 million in net outflows but traded a combined volume of $3.24 billion.

Bitcoin’s Price Continues to Surge

On the day of the outflows, Bitcoin’s price rose 1.3%, reaching $96,690 by 1 p.m. Hong Kong time, according to The Block’s Bitcoin price page. Despite the outflows from IBIT, the price of Bitcoin continues to show strength, suggesting that investor demand for the asset remains solid.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.