BlackRock’s Bitcoin Trust Records First Outflow in Nearly Four Months
Recent data shows that the iShares Bitcoin Trust (IBIT), managed by BlackRock, experienced a day of outflows totaling $13.5 million on August 29. This marks the first time the BlackRock spot Bitcoin exchange-traded fund (ETF) has seen negative flow since May 1, where the outflow amounted to $36.9 million. Following this event, the fund has either seen inflows or remained stagnant.
IBIT Performance and Holdings
Since May, BlackRock’s IBIT has outperformed the Grayscale Bitcoin Trust (GBTC) and emerged as the leading Bitcoin ETF. With assets under management (AUM) surpassing $19.7 billion and holding 288,671 bitcoin (BTC), IBIT became the largest spot Bitcoin ETF back in May. Currently, IBIT holds 357,740 BTC with an AUM of $17.24 billion, mainly due to the drop in BTC value compared to May levels.
During May, BTC was priced around $68,000. However, as per CoinMarketCap data, at the time of writing, the leading cryptocurrency was valued at $59,200, showing a slight decline in the past 24 hours.
Continued Outflows in U.S. Bitcoin ETF Market
Simultaneously, the U.S. spot Bitcoin ETF market has been experiencing a three-day streak of outflows. On August 27, outflows totaled $127.1 million, followed by $105.3 million on August 28, and an additional $71.8 million on August 29. These heavy outflows have only been offset by Ark Invest’s ARKB, which saw inflows amounting to $5.3 million on August 29. Other funds, including Fidelity’s FBTC, Bitwise’s BITB, and Invesco Galaxy’s BTCO, have either shown outflows or no activity.
Furthermore, Grayscale’s GBTC has maintained its outflow streak, with investors withdrawing $22.7 million, totaling $49 million in negative flows over the past three days.
Despite these recent outflows, the total net assets of the U.S. spot Bitcoin ETF market represent 4.62% of bitcoin’s market cap, as per data from SosoValue. Since their launch, these funds have seen a cumulative net inflow of $17.78 billion and currently hold a total AUM of $50 billion.
Hot Take: Insights and Analysis
As the U.S. spot Bitcoin ETF market witnesses continued outflows and BlackRock’s IBIT records its first outflow in almost four months, it indicates a changing landscape for crypto investments. The recent decline in BTC value has likely impacted investor sentiment, leading to heavy outflows from various funds. However, the overall market remains significant, with substantial assets under management in the Bitcoin ETF space. Investors should keep a close eye on these developments to make informed decisions in the ever-evolving crypto market.
Sources:
– Farside Investors
– SosoValue
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