On January 2, BlackRock’s iShares Bitcoin Trust (IBIT), a leading U.S. spot Bitcoin ETF, experienced an unprecedented daily outflow of $332.6 million. This marks the largest withdrawal since the fund’s launch last year, surpassing the previous high of $188.7 million, recorded on December 24, 2023.
The massive outflow occurred just after the U.S. market reopened following the New Year’s Day holiday, drawing attention from investors and analysts alike. With this outflow, IBIT now holds the dubious distinction of having three consecutive days of withdrawals, amounting to a total of $392.6 million over the past week.
Despite these significant withdrawals, BlackRock’s Bitcoin ETF remains one of the top funds for 2024, showing a strong inflow performance in comparison to other competitors in the cryptocurrency fund space.
Other Bitcoin ETFs See Inflows Amidst Outflows
While BlackRock faced substantial outflows, other players in the Bitcoin ETF market recorded positive inflows on the same day. According to data from Farside Investors, Bitwise, Fidelity, and Ark 21Shares saw inflows of $48.3 million, $36.2 million, and $16.5 million, respectively. Even Grayscale’s smaller Bitcoin Mini Trust ETF (BTC) posted modest gains of $6.9 million.
However, the larger Grayscale Bitcoin Trust (GBTC) experienced a $23.1 million outflow, contributing to a net outflow of $242 million across the entire sector for the day. This shows a mixed sentiment within the market, with some funds seeing investment, while others, like BlackRock’s IBIT, face significant withdrawals.
BlackRock ETF Still Performs Well in 2024
Despite the recent setbacks, BlackRock’s Bitcoin ETF continues to perform well overall. As of January 2024, it ranks third in terms of U.S. ETF inflows, with a total of $37.2 billion. This positions it just behind the Vanguard S&P 500 ETF (VOO), which led the list with $116 billion, and the iShares Core S&P 500 ETF (IVV) at $89 billion. The ETF’s ability to maintain significant inflows despite recent outflows indicates its strong position in the broader ETF market.
In addition, the overall performance of Bitcoin ETFs for 2024 is still robust. Investors are carefully monitoring these market dynamics, as fluctuations in Bitcoin prices and investor sentiment could continue to impact fund flows. As the market stabilizes, these large-scale withdrawals may offer valuable insights into investor behavior and market sentiment towards crypto-based ETFs.
Key Takeaways:
- BlackRock’s IBIT saw a record $333 million outflow on January 2, 2024.
- Despite the outflows, IBIT remains a top-performing ETF with $37.2 billion in inflows for 2024.
- Competitor ETFs, such as Bitwise and Fidelity, recorded positive inflows.
- The overall net outflow across Bitcoin ETFs was $242 million, showing mixed market sentiment.
Sources & Methodology
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