BlackRock’s Bitcoin ETF posts record outflow after banner year

INVESTORS yanked a net US$333 million from BlackRock’s iShares Bitcoin Trust ETF (IBIT) on Thursday (Jan 2), the most withdrawn from the record-breaking fund since its launch.

The fund also suffered a third consecutive day of outflows, its longest losing streak, according to data compiled by Bloomberg.

As the largest spot Bitcoin fund with over US$53 billion in assets and nearly US$37 billion in inflows, IBIT proved a major hit with institutional investors after a January launch and helped push the largest digital asset to an all-time high of US$108,315 in mid-December.

The tapering of flows to IBIT is another sign of Bitcoin’s record-breaking run in 2024 taking a breather. The group of a dozen Bitcoin exchange-traded funds in the US have posted a net outflow of about US$2 billion since Dec 19, according to data compiled by Bloomberg.

Open interest – or outstanding contracts – for Bitcoin futures hosted by Chicago-based CME Group, seen as a measure of US institutional demand, also fell nearly 20 per cent from its December peak.

“The outflows and decreased open interest is expected with institutions paring back risk and window dressing for year-end balance sheet adjustments,” said Paul Howard, senior director at crypto market maker Wincent.

BlackRock did not immediately respond to a request for comment from Bloomberg News.

Bitcoin was trading at $96,465 at 6:03 am on Friday in New York, about 11 per cent below its record high. BLOOMBERG