In a surprising development, BlackRock, one of the foremost asset management firms, has experienced a dramatic shift in its Bitcoin exchange-traded fund (ETF), witnessing a staggering outflow of $72.7 million. This significant withdrawal on December 20 marks the end of a continuous inflow trend that began when the fund launched in January.
Historic Withdrawal Breaks Inflow Streak
Data from recent financial reports reveals that the BlackRock Bitcoin ETF (IBIT) has faced the largest outflow since its inception. According to Farside Investors, the $72.7 million withdrawal recorded in December is unprecedented for the fund. This loss occurred just a day following a period of no transactions, raising red flags for investors about the ETF’s future viability.
But it’s not just BlackRock that is feeling the pressure. The Fidelity Wise Origin Bitcoin Fund (FBTC) also saw a troubling outflow of approximately $208.5 million on December 19, just a day before IBIT’s substantial withdrawal. FBTC faced another significant outflow of $71.9 million on December 20, resulting in two straight days of major withdrawals for both of these prominent ETFs.
As of now, IBIT and FBTC rank as the top two exchange-traded funds in the United States, holding their positions among the leading 25 ETFs by assets after just a month of operation.
Rising Investor Anxiety
The significant outflows from BlackRock and Fidelity, two of the largest ETF issuers in the country, have sparked anxiety among cryptocurrency investors about what lies ahead for these funds. Yet, analysts mention that the trends seen from these firms are not entirely unexpected. Both companies have played a pivotal role in driving inflow patterns in the market.
Investors are increasingly apprehensive that this recent trend with ETFs might indicate a larger decline in institutional interest towards Bitcoin. However, many observers in the market remain optimistic, believing that these outflows are likely to be temporary. After a drop to $92,710, Bitcoin recently demonstrated its resilience by clawing back in value in the following days.
Slump in Bitcoin Trading Volume
Trading analysts have noted a significant decline in Bitcoin’s trading volume, which has dipped to $59.5 billion. This figure represents a 52% drop compared to the bullish momentum following Donald Trump’s election victory last month. In November, Bitcoin reached an all-time high of $108,000 per coin during this surge.
As this article is prepared, Bitcoin is trading at $95,436, reflecting a slight decrease of 1.3% over the past 24 hours, with the total market capitalization resting at $1.9 trillion.
Source: Bitcoinist
