BlackRock's Bitcoin ETF Sees Record $333 Million Outflow, Longest Losing Streak

IBIT is a passively managed fund by BlackRock that seeks to track the spot price of Bitcoin (BTC-USD).

BlackRock’s (BLK) iShares Bitcoin Trust ETF (IBIT) saw investors withdraw a staggering $333 million on Thursday, according to Bloomberg. This marked the largest one-day withdrawal since the ETF’s record-breaking launch in January last year.

Don’t Miss Our New Year's Offers

It was also the third consecutive day of outflows for the fund, its longest losing streak to date, based on Bloomberg data.

IBIT is a passively managed fund by BlackRock that seeks to track the spot price of Bitcoin (BTC-USD).

IBIT Was Popular Among Institutional Investors

IBIT quickly became a favorite among institutional investors after its launch, amassing over $53 billion in assets and attracting nearly $37 billion in inflows. The fund’s rapid growth was driven by Bitcoin’s meteoric rise to an all-time high of $108,315 in mid-December. However, the recent outflows suggest Bitcoin’s remarkable run in 2024 may be losing steam.

Are Bitcoin-Focused ETFs Losing Momentum?

The soaring outflows for the IBIT ETF don’t appear to be an isolated incident. According to data compiled by Bloomberg, around a dozen U.S.-based Bitcoin exchange-traded funds have seen net outflows of approximately $2 billion since December 19.

In another sign of slowing demand, open interest (outstanding contracts) in Bitcoin futures hosted by the CME Group has dropped nearly 20% from its December peak. Open interest is considered a key indicator of institutional demand for the cryptocurrency.

While Bitcoin remains a dominant force in the crypto space, these outflows indicate some investors may be locking in gains after its record-breaking year.

What Is the Future Price of IBIT?

Over the past year, the IBIT ETF has surged by more than 110%, reflecting the soaring price of Bitcoin. IBIT has $51.7 billion of assets under management (AUM), with an expense ratio of 0.12%. It remains to be seen whether this ETF will continue to rise, reflecting the Bitcoin rally, or if its momentum will slow down.