Despite recent outflows from BlackRock's iShares Bitcoin Trust (IBIT), US Bitcoin exchange-traded funds (ETFs) have reversed an eight-day trend of net withdrawals, signaling renewed institutional interest and growth in the space.
Key Takeaways
BlackRock's iShares Bitcoin Trust saw a $9 million outflow on September 9.
US Bitcoin ETFs posted over $28 million in net inflows, breaking an eight-day outflow streak.
BlackRock’s iShares Bitcoin Trust Faces Outflows
On September 9, BlackRock’s iShares Bitcoin Trust (IBIT) reported a $9 million net outflow, marking its third consecutive day of withdrawals since its launch in January. The outflows follow similar movements on August 29 and a brief pause in early September. Despite these losses, IBIT has consistently attracted strong inflows, amassing nearly $21 billion in assets and holding over 350,000 Bitcoin. However, the fund's first significant outflow occurred on May 1, when $37 million was withdrawn, coinciding with the largest single-day outflow from US spot Bitcoin ETFs.
US Bitcoin ETFs See Net Inflows After 8-Day Streak of Outflows
On Monday, US Bitcoin ETFs saw a reversal of their eight-day outflow streak, with over $28 million in net inflows. The Fidelity Wise Origin Bitcoin Fund (FBTC) led the surge, attracting $28 million in new investments, bringing its total net inflows to nearly $9.5 billion after eight months of trading. Other Bitcoin ETFs, including Bitwise Bitcoin ETF (BITB), ARK 21Shares Bitcoin ETF (ARKB), and Invesco Galaxy Bitcoin ETF (BTCO), saw inflows of $22 million, $7 million, and $3 million, respectively.
Conversely, the Grayscale Bitcoin Trust (GBTC) continued to experience outflows, losing nearly $23 million in the same trading session. GBTC has seen significant withdrawals since its conversion into an ETF, with roughly $20 billion leaving the fund. As a result, its assets under management (AUM) have dropped by 60%, from over 620,000 BTC to around 222,700 BTC.
Investment Advisors Drive Organic Growth in Bitcoin ETFs
According to Bitwise Chief Information Officer (CIO) Matt Hougan, investment advisors are rapidly integrating spot Bitcoin ETFs into their portfolios, driving organic growth faster than any other ETF in history. Responding to criticism that only 10% of US-traded spot Bitcoin ETF AUM comes from advisors, Hougan pointed out that $1.45 billion in net flows from advisors has made BlackRock's IBIT the second-fastest-growing ETF of 2024, out of more than 300 funds launched this year.
Hougan’s analysis was supported by Bloomberg ETF analyst Eric Balchunas, who noted that more than 1,000 institutions now hold Bitcoin ETFs after just two 13F reporting periods—a record for institutional adoption. Balchunas anticipates that institutional holdings in IBIT could double within the next year, further solidifying Bitcoin ETFs as a major force in the financial landscape.
Despite the recent outflows from BlackRock’s IBIT, the broader US Bitcoin ETF market continues to show resilience and growth, with renewed investor interest driving positive inflows and institutional adoption.
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