BlackRock’s Bitcoin ETF Sees Record Outflows Amid Market Adjustments

On Thursday, BlackRock’s iShares Bitcoin Trust ETF (IBIT) experienced its largest single-day outflow to date, with investors withdrawing $332.6 million.

This marked a sharp increase from the previous high of $188.7 million in outflows recorded on Christmas Eve. Trading volume for the day reached $2.26 billion.

Institutional portfolio rebalancing could be driving this activity, according to Neal Wen, Head of Global Business Development at Kronos Research. Wen explained that such shifts are often tied to adjustments in asset allocation, influenced by broader market conditions or Bitcoin’s recent price fluctuations.

Despite these outflows, IBIT remains the dominant spot Bitcoin ETF, having attracted a total of $36.9 billion in net inflows and managing nearly $53.5 billion in assets. However, its performance in recent weeks has been less robust compared to earlier in December, when Bitcoin surged to an all-time high of $108,135.

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In contrast, other Bitcoin ETFs saw moderate inflows. Bitwise’s BITB led with $48.3 million, followed by $36.2 million into Fidelity’s FBTC. Funds from Ark Invest and 21Shares (ARKB), VanEck (HODL), and the Grayscale Mini Bitcoin Trust also saw increased investments. The Grayscale GBTC fund was the only other ETF to post a net outflow, with $23.1 million withdrawn.

Overall, U.S. spot Bitcoin ETFs recorded $242.3 million in combined net outflows on Thursday, while total trading volume reached $3.24 billion. During the same period, Bitcoin’s price rose slightly by 1.3%, reaching $96,690 as of 1 p.m. in Hong Kong, according to The Block.

Alexander Zdravkov