BlackRock's Bitcoin ETF Posts Record Single-Day Outflows

BlackRock's Bitcoin ETF Posts Record Single-Day Outflows

BlackRock’s iShares Bitcoin Trust (IBIT) experienced a significant setback on Thursday, marking its largest single-day net outflow with an astonishing $332.6 million withdrawn from the fund. This comes after a record-breaking performance in 2024, when IBIT helped fuel Bitcoin's rise to an all-time high of over $108,000 in December, bolstered by an impressive $37 billion in inflows. 

IBIT, the largest Bitcoin exchange-traded fund (ETF), currently holds approximately $54 billion in net assets. Despite its dominant position in the market, Thursday's outflow represents the third consecutive day of withdrawals from the fund, bringing the total outflow for the week to nearly $393 million, highlighting a potential shift in investor sentiment.

However, some analysts, including Bloomberg's ETF expert Eric Balchunas, do not view this as a signal of impending market downturns. In a post on X, Balchunas suggested that such fluctuations are part of a normal market cycle, stating, "It's gonna be two steps forward, one step back, and lately it's been like 6 steps forward, so long overdue IMO." This perspective indicates that such outflows could simply be part of the ongoing ebb and flow of the market, rather than a cause for immediate concern.

While IBIT saw substantial outflows, other Bitcoin ETFs recorded more modest inflows on the first trading day of 2025. Bitwise’s BITB and Fidelity’s FBTC both reported inflows of $48 million and $36 million, respectively, although these were nowhere near enough to offset the magnitude of IBIT’s withdrawals. On the other hand, Ethereum ETFs struggled, with combined outflows of $77.5 million, according to Farside Investors.

The situation underscores the volatility of the cryptocurrency ETF space, where investor sentiment can shift rapidly. Despite the temporary setbacks for IBIT, its long-term outlook remains strong, and it continues to play a key role in Bitcoin's market performance.