Bitcoin ETF from BlackRock sees $13.5 million in initial outflows since May

BlackRock, the world’s largest asset manager, experienced a setback with its spot bitcoin exchange-traded fund (ETF) as it faced net outflows of $13.5 million on August 29. This marked the first significant decline in four months for the ETF, a development reported by Cointelegraph. The last time such substantial losses were observed was back in May.

The iShares Bitcoin Trust (IBIT) by BlackRock has encountered outflows for the second time this year, surprising many given the fund’s popularity among retail traders seeking exposure to bitcoin. The previous instance of outflows for IBIT was in May, resulting in net losses amounting to $36.9 million.

Notably, competing funds such as those from Fidelity, Bitwise, and Grayscale also faced outflows on the same day, totaling losses of $71.8 million. These funds, comprising 11 entities approved by the U.S. Securities and Exchange Commission (SEC) in January, have not raised concerns among market analysts despite the broader decline in bitcoin’s value over the summer. Presently, the price of bitcoin hovers around $59,000.

While BlackRock recorded losses, Fidelity and Grayscale experienced more substantial setbacks, with over $53 million in combined losses. Specifically, on August 29, the Fidelity Wise Origin Bitcoin Fund saw net losses of $31.1 million, and the Grayscale Bitcoin Trust (GBTC) suffered losses exceeding $22 million. Conversely, the ARK 21Shares Bitcoin ETF was the sole fund to witness inflows on August 29, with net inflows totaling $5.3 million.

The trend of outflows extended to spot ether ETFs, which entered the market in July. On the same day, ether ETFs collectively reported losses of $1.7 million.

In conclusion, the recent outflows in various cryptocurrency funds, including BlackRock’s spot bitcoin ETF, reflect the dynamic nature of the digital asset market. Despite these challenges, market analysts remain watchful amid fluctuations in bitcoin’s value and the performance of different investment vehicles in the cryptocurrency space.