BlackRock’s Bitcoin ETF Experiences $13.5 Million Outflow Amidst Market Downturn
BlackRock’s iShares Bitcoin Trust (IBIT), an exchange-traded fund (ETF), has experienced its second occurrence of outflows since its inception in January, reportedly amounting to $13.5 million on August 29. This follows a previous outflow of $36.9 million on May 1, marking a significant trend given that, according to Farside Investors, this recent outflow also represents the worst single-day outflow for Bitcoin on record.
Collectively, the eleven spot Bitcoin ETFs operating within the United States reported an aggregate net outflow of $71.8 million on the same day. Notably, BlackRock’s fund ranked third in terms of outflows, following Fidelity’s Wise Origin Bitcoin Fund (FBTC) which led with $31.1 million, and the Grayscale Bitcoin Trust (GBTC), which reported $22.7 million in outflows.
It is worth noting that IBIT had recorded a significant rebound just days prior, with a remarkable inflow of $224.1 million on August 26, which represented its highest influx since July 22, when the fund attracted $526.7 million. In contrast, the ARK 21Shares Bitcoin ETF (ARKB) was unique in that it registered net inflows of $5.3 million on August 29.
These outflows coincide with a broader decline in the price of Bitcoin, which has decreased by approximately 3.43% over the past week, with trading presently observed at $58,751 as of the publication date, as reported by CoinMarketCap.
Furthermore, in the realm of Ether ETFs, the Grayscale Ethereum Mini Trust (ETH) was the sole fund to register net inflows, gaining $3.6 million. However, this was insufficient to offset the $5.3 million in net outflows recorded by the Grayscale Ethereum Trust (ETHE), which has been witnessing continuous outflows since its launch in July, accumulating a staggering total of $2.56 billion in outflows. The price of Ether has concurrently fallen by 5.64% over the past week, currently trading at $2,517.06, according to CoinMarketCap.
In summary, the current trends indicate a complex situation for Bitcoin and Ether ETFs, with significant outflows that reflect broader concerns within the cryptocurrency market, aligning with recent price declines.
Source: CoinMarketCap, Farside Investors.
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