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The outflows from US spot Bitcoin ETFs come at a time when Bitcoin itself is struggling with its price.
There has been a turnaround in the good fortunes of BlackRock’s spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust. This follows after the fund, which trades under the ticker IBIT, hit a rough patch on Thursday, August 29th, to see what was its second-ever day of net outflows. That is since it made its debut nearly eight months ago.
According to data from Farside Investors, $13.5 million exited the ETF on the day, marking a significant change in the status quo for a fund that has otherwise enjoyed consistent inflows.
Outflows Hit BlackRock’s IBIT
Since its launch, IBIT has posted really strong performance, generally attracting investors and enjoying a positive momentum. So much so that the ETF has attracted nearly $21 billion in net inflows so far, and now holds the spot for the largest Bitcoin fund in the world. That is since it displaced Grayscale Bitcoin Trust (GBTC) in May.
With its Bitcoin holdings now more than 350,000 BTC, there is no doubt whatsoever that the fund has been flourishing.
However, the recent outflows may suggest another reality. It could mean that investor confidence is now wavering. It is also possible that the negative flow may have an entirely different driving force.
The fund experienced its first-ever outflow on May 1 when investors pulled $37 million from it. Notably, though, the incident was not peculiar to IBIT. That is because the day went down in the history of US spot Bitcoin ETFs as the day of the biggest daily outflow with $564 million withdrawn across the board.
Thursday’s outflow marks the second such experience for BlackRock’s Bitcoin ETF. However, this may be directly linked to the fact that investors are apprehensive and exercising extreme caution in the face of Bitcoin’s ongoing price volatility.
Recall that earlier this week, Coinspeaker reported the fund as having seen $224 million in new investments on Monday. With the latest development, however, it appears that there has been a shift in market sentiment.
Moreover, the challenges faced by BlackRock’s iShares Bitcoin Trust are not unique to it. The entire group of US spot Bitcoin ETFs reported a net outflow of nearly $72 million on Thursday. This makes it the third consecutive day of losses for these funds, reflecting what might be called a broader market consciousness, particularly with regard to Bitcoin investments.
Interestingly, however, ARK Invest/21Shares’ Bitcoin ETF was the odd one out on Thursday and was the sole fund to report net inflows.
Bitcoin Struggles to Hold $61,000, Adds to ETF Woes
The outflows from US spot Bitcoin ETFs come at a time when Bitcoin itself is struggling with its price. It briefly attempted to stabilize above the $61,000 mark, but slipped back below $59,000 during Thursday’s US trading session.
As of publication, though, Bitcoin was trading at $59,410, posting a modest 0.29% loss over the past 24 hours. Bitcoin remains down approximately 10.60% over the past month.
This declining BTC price, its inability to hold onto gains, and the upcoming elections, among other uncertainties, may be contributing to the outflows from Bitcoin ETFs. That is as investors begin to reconsider their positions in these ETFs.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Funds & ETFs, Market News, News
Mayowa is a crypto enthusiast/writer whose conversational character is quite evident in his style of writing. He strongly believes in the potential of digital assets and takes every opportunity to reiterate this. He's a reader, a researcher, an astute speaker, and also a budding entrepreneur. Away from crypto however, Mayowa's fancied distractions include soccer or discussing world politics.
