BlackRock Bitcoin ETF Faces Record Outflow as Funds Drop $1.5B in Four Days

BlackRock iShares Bitcoin Trust ETF (IBIT) has experienced its largest-ever outflow, leading a significant downturn across the U.S.-based Bitcoin exchange-traded fund (ETF). In just four days, Bitcoin funds collectively recorded outflows of over $1.5 billion, marking a challenging period for the flagship cryptocurrency’s institutional adoption.

BlackRock Record Outflows Across Bitcoin ETFs

On December 24, BlackRock’s Bitcoin ETF saw $188.7 million in outflows, setting a new record and surpassing the $72.7 million outflow reported on December 20. The outflow was part of a broader trend, with all 12 U.S. spot Bitcoin ETFs witnessing total outflows of $338.4 million on Christmas Eve alone.

Other notable funds also faced significant outflows on the same day, including Fidelity’s Wise Origin Bitcoin Fund, which lost $83.2 million, and the ARK 21Shares Bitcoin exchange-traded fund (ETF), which recorded $75 million in outflows. Bitwise Bitcoin ETF was the sole exception, gaining an inflow of $8.5 million.

In contrast, Ether exchange-traded fund (ETF) showed resilience, logging two consecutive days of inflows leading up to Christmas. On December 24, Ether ETFs added $53.6 million, following a $130.8 million inflow the previous day. Since November, Ether exchange-traded fund (ETF) have gained significant traction, outperforming Bitcoin ETFs in recent weeks.

Bitcoin and Ether Trends

Bitcoin’s price showed modest recovery, trading at $98,035 with a 4.59% gain in the past 24 hours. Meanwhile, Ether, trading at $3,420, saw a 3.28% increase during the same period. Analysts predict Ether may outperform Bitcoin in January 2025, supported by its strengthening ETH/BTC ratio, currently at 0.035.

Despite recent setbacks, U.S. Bitcoin ETFs surpassed gold funds in net assets under management (AUM) for the first time on December 16, reaching $129 billion. This milestone, which includes both spot and futures-based Bitcoin ETFs, highlights the growing interest in Bitcoin as an alternative asset class, even amidst temporary outflows.