On January 2, the iShares Bitcoin Trust (IBIT), overseen by BlackRock, witnessed a historic wave of withdrawals, marking its most significant outflow since launching just a year prior. Trading resumed in the U.S. following the New Year’s holiday, and the ETF saw outflows totaling an astonishing $332.6 million, as noted by Farside Investors. This figure eclipses the previous withdrawal record of $188.7 million established on December 24, 2023.
Recent Trends in Withdrawals
This latest exodus forms part of a broader trend, as January 2 marked the third consecutive day of outflows for the IBIT. In total, investors have pulled approximately $392.6 million over the past week alone.
Comparative Inflows
Despite the severity of these withdrawals, some analysts remain hopeful, viewing the situation as a potential short-term hiccup rather than a lasting trend. Interestingly, the BlackRock Bitcoin fund had achieved the status of third-highest for inflows across all U.S. exchange-traded funds in 2024, amassing an impressive $37.2 billion, according to Bloomberg data shared by ETF expert Eric Balchunas.
In contrast to the outflows at BlackRock, several other investment firms enjoyed inflows on the same day. Bitwise, for instance, welcomed $48.3 million, while Fidelity attracted $36.2 million and Ark 21Shares gained $16.5 million. Additionally, Grayscale’s Bitcoin Mini Trust saw a modest inflow of $6.9 million, despite its larger GBTC fund experiencing a drop of $23.1 million.
Market Dynamics
In the grand scheme of things, the total outflow for January 2 reached $242 million, which outstripped the inflows from competing funds. The current landscape suggests a dynamic shift among investors, showcasing varying appetites for cryptocurrency exposure and highlighting the fluctuating nature of the market.
Source: Cointelegraph
