BlackRock's Bitcoin ETF Sees Largest Outflow Ever

BlackRock's IBIT fund saw outflows of $332.6 million in the trading session on January 2, 2025, the highest level in nearly a year.

According to data from Farside Investors, US spot Bitcoin ETFs recorded a total outflow of $247.8 million on January 2 - the first session of the New Year 2025 - continuing a series of unfavorable results since mid-December.

Notably, leading the selling pressure yesterday was BlackRock's IBIT fund with outflows of $332.6 million, the highest level since its inception in January 2024. This was also the third consecutive outflow session of IBIT, which has never happened in history.

Meanwhile, except for Grayscale's GBTC fund, which had an outflow of $23.1 million, the remaining ETFs all had inflows or no activity.

However, IBIT is still the largest Bitcoin spot ETF, with a total inflow of $36.9 billion over the past 12 months and is holding $53.5 billion worth of BTC.

The reason IBIT has seen strong selling pressure in recent times may stem from large US institutions rebalancing their investment portfolios in the new year, as well as preparing for Q4/2024 operating reports and fulfilling tax obligations.

Bitcoin prices have recovered from the $91,500 range to over $97,400 in recent days, before falling slightly to $96,600 at the time of writing.

Similar to Bitcoin ETF, Ethereum ETF also had a rough trading session on January 2 with a total outflow of 77.5 million USD, with selling pressure mainly coming from Bitwise and Grayscale, while the remaining funds were inactive.

However, unlike BTC, ETH ETF has been more stable with inflow trading sessions since mid-December to now overwhelming outflow in both quantity and value.

ETH price is currently trading in the $3,450 range, still fluctuating in the $3,300 - $3,500 range since mid-December until now.