BlackRock’s iShares Bitcoin Trust (IBIT) ETF experienced its second significant outflow since its launch in January, signaling broader concerns in the cryptocurrency market. On August 29, the ETF recorded a net outflow of $13.5 million, marking another challenging day for Bitcoin exchange-traded funds (ETFs).
ETF Outflows Surge
According to data from Farside Investors, the outflow from BlackRock’s IBIT on August 29 was part of a more significant trend affecting Bitcoin ETFs. The day witnessed the worst joint outflow on record for these funds, with a staggering $563.7 million withdrawn across various ETFs. The 11 U.S.-based spot Bitcoin ETFs recorded joint net outflows amounting to $71.8 million.
Top ETFs Impacted
The Fidelity Wise Origin Bitcoin Fund (FBTC) led the losses with $31.1 million in net outflows, followed by the Grayscale Bitcoin Trust (GBTC), which saw $22.7 million withdrawn. BlackRock’s IBIT came in third, adding to the concerns of investors recently shown a surge in Inflows.
Ongoing Market Pressure
The recent wave of outflows is amidst a broader downturn in the cryptocurrency market, particularly affecting Bitcoin and Ethereum. Over the last seven days, Bitcoin’s value has dropped by 2.12 %, trading at $59,569 as of press time.
Meanwhile, Ethereum has also seen a similar decline, with its price falling 5.32% to $2,515 over the last week. This downward trend in cryptocurrency prices has likely contributed to the significant outflows from ETFs as investors react to the market’s volatility and reassess their positions.
Recent Inflows Reversed
Wednesday’s outflow marked a dramatic swing from earlier days, when BlackRock’s IBIT had $224.1 million net inflows on August 26. This is the most significant inflow since July 22, when it was a whopping $526.7 million. This sudden move highlights the unpredictability of the cryptocurrency market and showcases how ETFs are still somewhat tied to broader market dynamics.
BlackRock’s $109.9M Ethereum Purchase Signals Major Institutional InterestThe ARK 21Shares Bitcoin ETF stood out as the only Bitcoin ETF to receive inflows totaling $5.3 million. This occurrence is significant given the outflows experienced by other major players, indicating a shift in investor sentiment.
The outflow trend wasn’t limited to Bitcoin ETFs; U.S.-based spot Ethereum ETFs also saw minor outflows, with $1.7 million withdrawn. The Grayscale Ethereum Mini Trust (ETH) saw a $3.6 million inflow. Still, it wasn’t enough to counterbalance the $5.3 million net outflows from its costlier sister fund, the Grayscale Ethereum Trust (ETHE).
