BlackRock’s iShares Bitcoin Trust (IBIT), a leading Bitcoin exchange-traded fund (ETF), experienced its second-ever day of net outflows on August 29th, coinciding with a decline in the price of Bitcoin. The outflow of $13.5 million follows the fund’s first outflow of $36.9 million recorded in May 2024.
This recent outflow contributed to a broader negative trend for US-based spot Bitcoin ETFs on August 29th. According to Farside Investors data, the combined net outflow for all 11 US Bitcoin ETFs totaled $71.8 million, marking the worst joint outflow day on record. Fidelity Wise Origin Bitcoin Fund (FBTC) led the outflows with $31.1 million, followed by Grayscale Bitcoin Trust (GBTC) at $22.7 million.
IBIT, however, remains a dominant player in the Bitcoin ETF space. Despite the outflows, the fund saw a significant net inflow of $224.1 million just three days prior on August 26th. This highlights the ongoing volatility in investor sentiment towards Bitcoin. Notably, ARK 21Shares Bitcoin ETF (ARKB) defied the trend on August 29th, attracting a net inflow of $5.3 million.
The outflows coincide with a recent downturn in Bitcoin’s price. The cryptocurrency has shed roughly 3.43% in the past week, trading at $58,751 at the time of publication (source: CoinMarketCap). Similar trends are observed in the Ethereum market. US-based spot Ether ETFs saw minor outflows of $1.7 million on August 29th, with the price of Ethereum experiencing a 5.64% decline in the last week, currently trading at $2,517.06 (source: CoinMarketCap).
Also Read: Bitcoin ETFs Suffer $105M Outflows; Ether ETFs Bounce Back With $5.8M Inflow Amid Market Volatility
While these outflows suggest a potential shift in investor sentiment towards Bitcoin and Ethereum, it’s important to note IBIT’s overall strong performance since its launch in January 2024. The fund has attracted significant inflows, holding over 350,000 Bitcoins as of August 29th. The coming weeks will be crucial to observe if this recent outflow trend persists or if it’s a temporary blip in the ongoing adoption of Bitcoin ETFs by institutional investors.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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