Record Outflow from BlackRock's Bitcoin ETF Amid Market Volatility

user avatar

by Giorgi Kostiuk

2 years ago

On the first trading day of 2025, BlackRock's Bitcoin ETF experienced a significant fund outflow, marking the largest in its history. This event underscores the cryptocurrency market's high volatility.

Largest Outflow from IBIT

According to SpotOnChain, on January 2nd, BlackRock's Bitcoin ETF recorded its largest outflow of $332.62 million, the highest since the fund's inception on January 11, 2024. Over three days, a total of $392.6 million was withdrawn from the fund. These outflows highlight the stable changes in the volatile cryptocurrency market, where macroeconomic conditions like interest rate changes may affect investors' risk tolerance.

Competitors Show Positive Inflows

While BlackRock faced outflows, competitors like Bitwise, Fidelity, and Ark 21Shares reported positive inflows of $48.3 million and $36.2 million respectively. Ark 21Shares, Grayscale Mini, and VanEck also saw inflows of $16.5 million, $6.9 million, and $5.51 million.

Outflows in Ethereum ETFs

Additionally, two Ethereum ETFs saw significant outflow activity on January 2, 2025, with $77.51 million withdrawn. SpotOnChain data indicated that outflows came from Bitwise ETH ETF and Grayscale's ETH ETF, which lost $56.11 million and $21.4 million respectively. The remaining seven Ethereum ETFs did not experience any outflows on January 2, 2025.

Despite notable outflows, BlackRock's Bitcoin ETF remains a significant player in the U.S. market, emphasizing the importance of strategic investment approaches during volatile market conditions.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Trump's Stock Market Celebration Turns Sour

President Trump's celebration of Wall Street's highs quickly turned negative as the SP 500 plunged, prompting discussions of emergency trading halts.

user avatarMaria Gutierrez

Market Faces Emergency Trading Thresholds Amid Selloff

The US stock market approached emergency trading thresholds as the SP 500 faced significant declines, raising concerns among traders.

user avatarDavid Robinson

Thailand's SEC Takes Action Against Bitget for Unlicensed Operations

Thailand's SEC has filed a criminal complaint against BG Limited for allegedly operating the cryptocurrency exchange Bitget without a license.

user avatarAndrew Smith

VanEck Sees Buying Opportunity in Bitcoin Mining Stocks After Market Correction

VanEck sees a buying opportunity in Bitcoin mining stocks after a market correction, citing limited electricity capacity and delays in grid connections as potential advantages.

user avatarZainab Kamara

Bitcoin Mining Stocks Plummet Amid AI Infrastructure Concerns

Bitcoin mining companies that expanded into AI infrastructure saw an average stock price decline of 35% in October 2023 due to market fears about rising borrowing costs and economic uncertainties.

user avatarJacob Williams

Proposed Loss Carryforward Mechanism for Cryptocurrency Investments

South Korean government officials proposed a three-year loss carryforward mechanism for cryptocurrency investments to create a balanced taxation approach.

user avatarTando Nkube

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.