BlackRock Bitcoin ETF Sees Largest Single-Day Outflow, Institutions Opting Out?

On Jan 3, 2025 at 9:51 am UTC by · 3 mins read

BlackRock Bitcoin ETF (IBIT) experienced its highest single-day outflow of $330 million while recording three consecutive days of outflows.

On Thursday, January 2, BlackRock‘s iShares Bitcoin Trust (IBIT) recorded its highest single-day outflow of $330 million selling around 3510 BTC BTC $84 329 24h volatility: 0.4% Market cap: $1.67 T Vol. 24h: $28.05 B . This is the first such big outflow from IBIT above $300 million since its launch last year in January 2024. Despite this, the BlackRock Bitcoin ETF still has a massive $37.2 billion inflow with assets under management of $53.7 billion as of the current BTC price.

With this, the BlackRock Bitcoin ETF has witnessed three consecutive days of outflows this week itself suggesting that institutions are looking for profit-booking after a massive yearly run-up. BlackRock’s IBIT has experienced $391 million in outflows over the past week.

Source: Apollo, Thomas Fahrer

While IBIT saw $331 million in outflows on Thursday, Grayscale’s GBTC also saw $23 million worth of outflows. On the other hand, other players recorded net inflows during the same time. For e.g. Bitwise’s BITB saw $48.3 million in inflows, Fidelity’s FBTC saw $36 million in inflows, while Ark Invests’ ARKB saw $16.5 million in inflows.

BlackRock Bitcoin ETF Ranks among Top Three

As per the data shared by Bloomberg’s Senior ETF Strategist Eric Balchunas, the BlackRock Bitcoin ETF stood among the top three ETF launches for 2024 as per net inflows. The Vanguard 500 Index Fund (VOO) led the year with $116 billion in inflows, followed by the iShares Core S&P 500 ETF (IVV), which secured $89 billion in inflows.

Source: Bloomberg

Speaking on the development, Bitcoin core developer Adam Back said: “So maybe in 2025, Bitcoin ETFs take top spot via more inflows and higher prices”.

Whether the same institutional demand will continue for IBIT this year in 2025 depends on the BTC price action and the euphoria around the asset. Following its all-time high of $108K, Bitcoin has continued to face selling pressure staying under the crucial support of $95,000.

Demand for Crypto ETFs on the Rise

Apart from Bitcoin ETF and Ethereum ETF, there are high hopes for approval of other crypto ETFs by the new SEC administration under the leadership of Paul Atkins.

ETF Store President Nate Geraci shared several predictions for crypto ETFs in 2025. This includes the launch of combined spot BTC and Ether ETFs, spot ETH ETF options trading, in-kind creation and redemption for spot BTC and ETH ETFs, staking for spot Ether funds, and the approval of a spot Solana ETF.

Bloomberg’s Eric Balchunas said that he doesn’t expect the approval of other crypto ETFs before July, unless the SEC decides to fast-track it.

“You can now bet on several alt coin ETF approvals (what a country). Not gonna say if we agree or not with these odds, but fyi there’s no active 19b-4s for any yet and typically it’s 240 days till approval- which would be beyond July. But, this SEC could act faster, who knows,” he wrote.

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