BlackRock’s Bitcoin ETF Sees Unprecedented Outflow After Success
BlackRock’s Bitcoin ETF faced a record $333 million outflow, marking a shift after a stellar year for the fund and Bitcoin itself
BlackRock, Bitcoin ETF, Investors, Outflow, London, CME Group
London: So, here’s the scoop. Investors pulled a whopping $333 million from BlackRock’s iShares Bitcoin Trust ETF on Thursday. That’s the biggest withdrawal since the fund kicked off.
It’s been a rough patch for the fund, marking three days in a row of outflows. That’s the longest losing streak it’s seen, according to Bloomberg’s data.
This ETF is the biggest spot Bitcoin fund out there, boasting over $53 billion in assets. It had a fantastic run, especially after launching in January, helping Bitcoin hit a record high of $108,315 last December.
But now, it seems like Bitcoin’s wild ride in 2024 is taking a breather. Overall, Bitcoin ETFs in the US have seen about $2 billion in outflows since mid-December.
Even the open interest for Bitcoin futures at CME Group has dropped nearly 20% from its peak last month. This is often seen as a sign of how much demand there is from institutional investors.
Paul Howard, a senior director at a crypto market maker, mentioned that these outflows and the drop in open interest are pretty normal. It’s just institutions managing their risks and adjusting their balance sheets for the year-end.
BlackRock hasn’t commented on this situation yet. As of Friday morning in London, Bitcoin was trading at $96,421, which is about 11% lower than its record high.