BlackRock's Bitcoin ETF Suffers $13.5 Million in First Outflows Since May
BlackRock's spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), experienced net outflows of $13.5 million on August 29, marking its first significant loss in four months. This setback comes as a surprise for the world's largest asset manager, given the fund's strong performance and popularity among retail traders seeking exposure to Bitcoin. According to a report from Cointelegraph, the last time IBIT registered similar outflows was in May, when it accumulated net losses of $36.9 million.
This recent outflow marks only the second time this year that BlackRock’s IBIT has seen net losses, highlighting a notable shift in the fund's momentum. The ETF, which has attracted considerable attention for its ability to offer an accessible entry point into the cryptocurrency market, has otherwise seen steady inflows throughout much of the year.
The outflows on August 29 were not isolated to BlackRock’s fund. Rival Bitcoin ETFs from companies like Fidelity, Bitwise, and Grayscale also recorded significant losses on the same day, with collective outflows amounting to $71.8 million. Despite these setbacks, market analysts remain largely unfazed, pointing out that the overall performance of these funds has been influenced by the broader decline in Bitcoin's price over the summer. As of now, Bitcoin is trading at approximately $59,000, a figure that reflects the cryptocurrency's ongoing volatility.
BlackRock’s losses were overshadowed by those of Fidelity and Grayscale, two major players in the crypto ETF space. Fidelity's Wise Origin Bitcoin Fund experienced the largest outflow on August 29, with net losses totaling $31.1 million. Meanwhile, the Grayscale Bitcoin Trust (GBTC) saw net losses of over $22 million. In contrast, the ARK 21Shares Bitcoin ETF was the only fund to buck the trend, recording $5.3 million in net inflows on the same day.
In addition to Bitcoin ETFs, spot Ether ETFs, which began trading on the market in July, also faced challenges on August 29. These funds collectively recorded $1.7 million in losses, reflecting the broader market conditions affecting both Bitcoin and Ether ETFs alike.
While these outflows are significant, they do not appear to have caused major concern among market participants. The crypto market continues to navigate a complex landscape, with price fluctuations and macroeconomic factors playing a crucial role in the performance of these investment vehicles. BlackRock, along with its competitors, remains a key player in this evolving space, and the coming months will likely provide further insights into the resilience of crypto ETFs in the face of market volatility.
@Jasikaran Vickneswaramoothy is a legal reporter for the Swiss Financial Times.
