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BlackRock’s IBIT Bitcoin ETF saw a record $332 million net outflow on Thursday, the largest since its launch a year ago.
BlackRock’s iShares Bitcoin Trust ETF (IBIT), which holds over $53 billion in net assets, reported $332.6 million in net outflows on January 3, exceeding the previous record of $188.7 million in net outflows that happened on Christmas Eve.
BlackRock's IBIT ETF saw a record outflow after a banner year — a net $333M left it on Jan. 2 amid on a third consecutive day of outflows. Its longest losing streak is not necessarily alarming, as it could have been due to portfolio rebalancing or profit taking. #Bitcoin #crypto
— EarnBIT (@Earnbit2) January 3, 2025
IBIT experienced $2.26 billion in trading volume yesterday, based on SoSoValue data. Neal Wen, the Head of Global Business Development at Kronos Research, said that investors “often rebalance their portfolios to align with asset allocation targets.”
“The large outflows from BlackRock’s IBIT may reflect such activity, particularly in response to Bitcoin’s price movements or broader market conditions,” he added.
Bitcoin soared to its all-time high of $108,135 in early to mid-December. During this period, BlackRock’s Bitcoin ETF saw significant net inflows. However, in recent weeks, the ETF has decreased in daily inflows.
Despite that, IBIT is still the largest spot Bitcoin ETF, with total net inflows reaching $36.9 billion and net assets of almost $53.5 billion.
In addition, other spot Bitcoin ETFs experienced significant inflows on Thursday. Bitwise’s BITB accumulated $48.3 million in net inflows, followed by Fidelity’s FBTC inflows of $36.2 million. Other sport Bitcoin ETFs, such as VanEck’s HODL and Grayscale Mini Bitcoin, experienced net inflows.
Another notable net outflow came from Grayscale’s GBTC, totaling $23.1 million. Overall, spot Bitcoin ETFs in the U.S. recorded net outflows of $242.3 million on Thursday and traded $3.24 billion.
The reason for this week’s large outflows can be attributed to a lack of confidence in the ETF’s strategy, sector, or broader market segment. However, they may also result from investors rebalancing portfolios or taking profits, which doesn’t always reflect a negative outlook on the ETF.
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