A major player in the cryptocurrency market found itself on an unusual side of history after experiencing its largest capital outflows in months.
Leading asset manager BlackRock ended the streak of inflows from its bitcoin exchange-traded fund after recording an outflow of $72.7 million on December 20.
The largest departure on record
Data showed that BlackRock bitcoin ETF (IBIT) witnessed the largest outflow since its launch in January this year.
According <a target="_blank" href="https://farside.co.uk/btc/” target=”_blank” rel=”noopener nofollow”>Far Side InvestorsThe global asset manager's bitcoin ETF recorded an outflow of 72.7 million in December, the highest on record for IBIT. They added that this came a day after IBIT recorded zero flows, making investors anxious about the exchange-traded fund.
Source: <a target="_blank" href="https://farside.co.uk/btc/" rel="nofollow noopener" target="_blank">Farside Investors
IBIT is not alone, as ETF issuer Fidelity Wise Origin bitcoin Fund (FBTC) also hit an all-time outflow high of $208.5 million on December 19, a day before IBIT suffered the same ordeal.
Analysts said that the next day, December 20, FBTC recorded another outflow of approximately $71.9 million, sending EFT into a two-day outflow streak.
IBIT and FBTC are among the best-performing exchange-traded funds in the United States. ETF issuers ranked 1 and 2 among the top 25 ETFs in terms of assets after one month on the market.
Market watchers said the U.S. Bicoin Spot ETF The market's record outflow for two consecutive days was driven by the all-time highest outflows experienced by BlackRock and Fidelity.
The data showed that the ETF market lost $671.9 million on December 19 and another $277 million in outflows the next day, December 20.
Some investors are worried
The massive outflows experienced by two of the largest ETF issuers in the US raised concerns among crypto investors about what the outlook for ETFs could be in the coming months.
However, analysts believed that the ordeal faced by BlackRock and Fidelity should not surprise traders, as both international asset management firms have largely explained the large inflows.
Some investors are concerned that the recent development of ETFs could become a tipping point that could lead to a substantial decline in institutional investors' appetite for bitcoin exposure.
Market watchers argued that the capital outflows might not last, adding that after bitcoin plunged to $92,710 earlier, the <a target="_blank" href="https://www.coingecko.com/en/coins/bitcoin” rel=”nofollow noopener” target=”_blank”>crypto alpha has been recovering and ascending again.
bitcoin volume drops
Trade analysts said bitcoin's market volume fell to $59.50 billion, a 52% decline in its total volume, bucking the bull run the cryptocurrency enjoyed after Donald Trump won the US election. last month.
During the cryptocurrency bull run, bitcoin reached its all-time high of $108,000 per coin in November.
In the same month, the US bitcoin Spot ETF also benefited from the cryptocurrency bull market after reaching a record $6.2 billion in net inflows.
At press time, bitcoin is trading at <a target="_blank" href="https://coinmarketcap.com/currencies/bitcoin/” target=”_blank” rel=”noopener nofollow”>$95,359 per coin, a decrease of 1.3% in the last 24 hours, with a total market capitalization of 1.9 trillion dollars.
Featured image from CNN, chart from TradingView
