BlackRock’s Bitcoin ETF Experiences First Outflow Since May

BlackRock's iShares Bitcoin Trust had a $13.5 million outflow on August 29th, its first since May 1st, amid ongoing Bitcoin ETF withdrawals.

Deniz Saat

Aug 30, 2024 - 1 min read

BlackRock's iShares Bitcoin Trust, a spot Bitcoin exchange-traded fund (ETF), experienced a $13.5 million outflow on August 29th, marking its first withdrawal since May 1st.

This outflow is the second for the iShares Bitcoin Trust since its launch in January, during a period when the ETF has generally seen consistent inflows.

Prior to Thursday's $13.5 million outflow, the last withdrawal was on May 1st when $37 million was pulled, coinciding with a dip in Bitcoin’s price to a local low of $56,000.

Yesterday IBIT, Blackrock's Bitcoin ETF saw outflows for the 2nd time ever (a modest -$13.5 million)

Last time this happened was May 1st which marked a low of ~$56,000. Bitcoin then rallied to $72k within 3 weeks
— Alistair Milne (@alistairmilne) August 30, 2024

The outflow occurred as spot Bitcoin ETFs recorded their third consecutive day of withdrawals, amounting to a total of $71.8 million on Thursday.

Other Bitcoin ETFs, including those from Grayscale, Fidelity, Valkyrie, and Bitwise, also reported outflows ranging from $8 million to $31 million.

Meanwhile, ARK's Bitcoin ETF recorded an inflow of $5.3 million, contrasting with the broader trend of outflows.

These varied flows indicate differing investor outlooks as Bitcoin remains below $60,000. The recent outflow from BlackRock’s iShares Bitcoin Trust, its first in several months, is a notable event, though it remains to be seen whether it signals a broader trend or a temporary shift.

Despite the recent outflow, BlackRock's Bitcoin ETF has accumulated over $20 billion in net inflows since its inception. It continues to be a significant player in the spot Bitcoin ETF market, managing over 350,000 Bitcoin.