BlackRock's Bitcoin spot ETF - "iShares Bitcoin Trust (IBIT)" hit its highest blood loss record since its listing on Thursday, with a total net outflow of US$330 million, causing an uproar in the market.
The scale of IBIT’s capital withdrawal even surpassed the record net outflow of $188.7 million set last Christmas. IBIT's turnover hit $2.26 billion on Thursday, according to SoSoValue.
Neal Wen, global business director of Kronos Research, analyzed that:
Institutional investors often adjust their investment portfolios to achieve asset allocation goals. This large-scale outflow of IBIT is likely to reflect this type of operation, which will occur more frequently when Bitcoin price volatility intensifies or market conditions change.
Bitcoin price has retreated, and IBIT's capital inflow has slowed.
IBIT's recent performance has been slightly weak, with the pace of capital inflows significantly slowing compared to the funding frenzy when Bitcoin surged to an all-time high of $108,135 in early December.
However, IBIT still firmly holds the title of the world's largest Bitcoin spot ETF, having attracted a cumulative inflow of $36.9 billion since its launch, with total assets under management reaching $53.5 billion.
Other Bitcoin ETFs show mixed performance, with signs of capital diversion emerging.
While IBIT faced a wave of withdrawals, other Bitcoin ETFs showed robust inflow performance. For example, Bitwise's BITB had a single-day net inflow of $48.3 million; Fidelity's FBTC recorded a net inflow of $36.2 million; Ark Invest and 21Shares' ARKB, VanEck's HODL, and Grayscale's Grayscale Mini Bitcoin Trust also attracted varying degrees of capital inflow on that day.
The only notable underperformer besides IBIT is Grayscale's flagship fund GBTC, which saw a net outflow of $23.1 million on that day. Overall, the net outflow for all U.S. Bitcoin spot ETFs on Thursday was approximately $242.3 million, while the daily trading volume reached $3.24 billion, highlighting that there is still strong trading demand in the market.
As of the time of writing, Bitcoin is quoted at $96,136, having slightly increased by 0.4% in the past 24 hours, indicating that market confidence in Bitcoin has not been completely shaken.
The Ethereum spot ETF also faced withdrawals.
At the same time, the Ethereum spot ETF also faced pressure from capital outflows on Thursday, with a net outflow of $77 million, including a single-day outflow of $56.1 million from Bitwise's ETHW and $21.4 million withdrawn from Grayscale's ETHE.
Despite this, the total trading volume of the Ethereum spot ETF rose from $313.1 million on December 31 to $397.2 million on that day, with cumulative net inflows remaining at $2.58 billion, indicating that long-term investment demand remains solid.
"BlackRock's Bitcoin spot ETF had a single-day net outflow of $330 million, setting a record for the highest historical loss" - this article was first published by (BlockKey).
