BlackRock’s spot Bitcoin ETF fund IBIT has recorded its largest single-day outflow of $418.1 million amid broader crypto market volatility, though it maintains dominance in the US market.
By Mayowa Adebajo
Edited by Marco T. Lanz
Updated
3 mins read
BlackRock’s spot Bitcoin ETF fund IBIT is fast losing its investors as many of them continue to pull out funds as a result of the present market volatility.
According to SoSoValue data, on Wednesday, IBIT recorded over $418.1 million in net outflows. This accounts for a new record for the fund’s biggest single-day withdrawal since its launch in January 2024.
The timing of these withdrawals is no coincidence. That is because Bitcoin BTC $82 172 24h volatility: 0.8% Market cap: $1.63 T Vol. 24h: $23.20 B has now been on a persistent decrease for the past week. In fact, the token dipped to over 15% this month and is presently trading 21% below its all-time high of $109,026.02.
Meanwhile, the last record for IBIT’s daily withdrawal was $332.6 million. This happened in early January, shortly before Bitcoin saw an extended increase that took it to its peak.
On the bright side, the current net outflows have not affected IBIT’s standing in the American market. This is because it remains the largest of all United States spot Bitcoin ETFs, having a total of $40.2 billion in net inflows and assets under management standing at $51.6 billion.
The fund is also leading in trading volume, accounting for 72% of all Bitcoin ETF activities this week. Out of the total $5.7 billion traded in these funds, IBIT alone handled $4.1 billion. If anything, this should garner positive sentiments in the market as regards the potential of the token.
Sadly, IBIT is not the only fund currently seeing this decline. In fact, the entire spot Bitcoin ETF market in the United States has seen several withdrawals, with investors pulling out their investments at a very discouraging rate.
For example, on February 26 alone, a total of $754.6 million left these funds, making it the second-largest single-day outflow in their history. Over the past week, the total outflows reached nearly $3 billion.
A key corporate investor, Fidelity’s FBTC, saw the second-largest outflow on Wednesday, losing $145.7 million. Similarly, ARK Invest’s ARKB followed with $60.5 million exiting the fund, while Grayscale’s Mini BTC fund also recorded a withdrawal of $56 million.
Meanwhile, the impact is also being felt across Ethereum exchange-traded funds. BlackRock’s ETHA product saw $69.8 million in withdrawals on Wednesday, leading a five-day outflow streak that now totals $244.4 million for all spot Ethereum funds combined.
Unfortunately, the increasing withdrawals come at a time of disparaging volatile economy. This has left analysts believing that growing concerns over President Trump’s tariff plans have added more pressure to an already shaky market. Maybe this is the reason why institutional investors are taking a more careful and deliberate approach to investing.
Notably, this present decline is not limited to only Bitcoin alone. Several other altcoins are also caught up in this crypto market instability. According to The Block’s GMCI 30 index, which tracks the top 30 digital assets, there has been a 12% drop already this week.
At the time of writing, there is little to suggest an immediate rebound. Even some market watchers are saying that Bitcoin is likely to continue facing selling pressure before stabilizing.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
