- Bitcoin ETF inflows slowed since late December with seven out of eight trading days seeing outflows
- Blackrock’s IBIT recorded its highest-ever outflows on January 2nd with $332.6 million in withdrawals
- Despite recent outflows, IBIT remains the largest Spot Bitcoin Fund with $53 billion in assets
Bitcoin ETF inflows have slowed since the last week of December, as investors shifted their focus to the end-of-the-year festivities. Adding to that picture, the collective of Bitcoin exchange-traded funds saw outflows on seven out of the eight trading days.
Blackrock’s IBIT—the largest Bitcoin ETF in the market—is also suffering the effects of that momentary stagnation. On January 2nd, IBIT recorded its highest-ever outflows in a single day in history.
On that date, IBIT registered $332.6 million in withdrawals. Before that date, the most outflows seen by the Bitcoin ETF was $188.7 million on December 24. The only other spot Bitcoin fund to register outflows on January 2nd was Grayscale’s GBTC with $23.1 million in withdrawals.
Moreover, this is also the first time since its launch that IBIT registered three consecutive outflow days in a row, highlighting a potential shift in investors’s sentiment moving forward. In total, all ETFs documented $242.3 million outflows on the year’s second day.
While that number may seem scary at first glance, IBIT is still the largest Spot Bitcoin Fund with $53 billion in assets, and over $36 billion in net inflows since January 2024. Today’s outflows represent a measly 0.7% of the total assets under management, meaning that the occurrence is far from being a major hit to the industry.
Also, market specialists like Eric Balchunas—senior ETF analyst at Bloomberg—believe that this negative movement was long overdue. In a Twitter post, Balchunas claims that the overall performance of Spot Bitcoin Funds was extremely positive throughout the year and that a retraction was needed to maintain a healthy market.
Furthermore, the maximum inflows ever recorded by IBIT far outweigh its most recent setback with $1.11 billion in deposits registered on November 7th.
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