BlackRock's Bitcoin ETF Reports Record $332.6M Outflows, But BTC Price Gains Amid Volatility

The cryptocurrency market experienced notable activity on Thursday, with BlackRock's iShares Bitcoin Trust ETF (IBIT) reporting record net outflows of $332.6 million

The cryptocurrency market saw significant activity on Thursday, with BlackRock’s iShares Bitcoin Trust ETF (IBIT) reporting a record net outflow of $332.6 million—the largest single-day outflow since its launch last year. The data, provided by SoSoValue, shows that this far exceeds the previous high of $188.7 million in outflows, which was observed on Christmas Eve.

Head of Global Business Development at Kronos Research, Neal Wen, suggests that these substantial outflows may be attributed to institutional portfolio rebalancing. “Large outflows from BlackRock’s IBIT could be reflecting such activity, especially in response to Bitcoin’s price movements or broader market conditions,” said Wen.

Despite the outflows, IBIT remains the largest spot Bitcoin ETF, with total net inflows of $36.9 billion and net assets approaching $53.5 billion. However, the ETF has seen weaker performance in recent weeks compared to the strong inflows it recorded during Bitcoin’s December rally, when the cryptocurrency reached its all-time high of $108,135.

Other spot Bitcoin ETFs saw varying fortunes on Thursday. While BlackRock’s IBIT experienced outflows, some ETFs attracted inflows. Here are the highlights:

At the close of the day, the cumulative net outflows from U.S. spot Bitcoin ETFs amounted to $242.3 million, along with a robust $3.24 billion in trading volume.

The outflows extended beyond Bitcoin. U.S. spot Ethereum ETFs recorded a total net outflow of $77.5 million on Thursday. The bulk of these outflows were observed in the following ETFs:

Despite the outflows, trading volume in Ethereum ETFs increased to $397.2 million from $313.1 million on December 31, with cumulative net inflows reaching $2.58 billion.

As the ETF activity unfolded, the price of Bitcoin rose by 1.3% over the past 24 hours, reaching $96,690 as of 1 p.m. in Hong Kong. The continuous increase highlights investor confidence in the cryptocurrency, even as the flows into and out of ETF funds experienced fluctuations.

BlackRock’s IBIT continues to lead the way among spot Bitcoin ETFs, showcasing the strength of institutional interest in Bitcoin. However, the net outflows on Thursday demonstrate the dynamism of the market as investors adjust their positions in response to broader economic and market conditions.

These ETF inflows and outflows serve as crucial indicators of investor sentiment and the increasing institutionalization of digital assets in the evolving crypto market. The back-and-forth movements of inflows and outflows reflect a maturing market, with both retail and institutional participation on the rise.