BlackRock Bitcoin ETF Sees Record Outflow of $332 Million on Thursday

BlackRock's IBIT bitcoin ETF posted a record net outflow of $332 million on Thursday, the largest since its launch a year ago.

BlackRock's iShares bitcoin Trust ETF (IBIT), which holds more than $53 billion in net assets, reported $332.6 million in net outflows on Jan. 3, surpassing the previous record of $188.7 million in net outflows that occurred on Christmas Eve.

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BlackRock's IBIT ETF saw a record outflow after a banner year, with a net $333 million leaving it on Jan. 2 amid a third straight day of outflows. Your longest losing streak is not necessarily alarming, as it could be due to portfolio rebalancing or profit taking. <a target="_blank" href="https://twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin <a target="_blank" href="https://twitter.com/hashtag/crypto?src=hash&ref_src=twsrc%5Etfw”>#crypto

— EarnBIT (@Earnbit2) <a target="_blank" href="https://twitter.com/Earnbit2/status/1875140811291320659?ref_src=twsrc%5Etfw”>January 3, 2025

IBIT experienced $2.26 billion in trading volume yesterday, according to <a target="_blank" href="https://sosovalue.com/assets/etf/us-btc-spot”>SoSoValue data. Neal Wen, head of global business development at Kronos Research, said investors “often rebalance their portfolios to align with asset allocation goals.”

“Large outflows from BlackRock's IBIT may reflect such activity, particularly in response to bitcoin price movements or broader market conditions,” he added.

bitcoin skyrocketed to its all-time high of $108,135 in early to mid-December. During this period, the BlackRock bitcoin ETF saw significant net inflows. However, in recent weeks, the ETF has decreased its daily inflows.

Despite that, IBIT remains the largest spot bitcoin ETF, with total net inflows reaching $36.9 billion and net assets of nearly $53.5 billion.

Additionally, other bitcoin spot ETFs saw significant inflows on Thursday. Bitwise's BITB racked up $48.3 million in net inflows, followed by Fidelity's FBTC inflows of $36.2 million. Other bitcoin sports ETFs, such as VanEck's HODL and Grayscale Mini bitcoin, saw net inflows.

Another notable net outflow came from Grayscale's GBTC, totaling $23.1 million. Overall, US spot bitcoin ETFs recorded net outflows of $242.3 million on Thursday and traded $3.24 billion.

The reason for this week's large capital outflows can be attributed to a lack of confidence in the ETF's strategy, sector or broader market segment. However, they can also be due to investors rebalancing their portfolios or taking profits, which does not always reflect a negative outlook for the ETF.

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