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BlackRock’s Bitcoin ETF Sees Record-High Outflows in January
BlackRock’s iShares Bitcoin Trust (IBIT) spot Bitcoin exchange-traded fund (ETF) experienced record-high outflows on January 2, with $333 million worth of outflows reported, the highest ever for the Bitcoin ETF.
Reasons for the Outflow
Alex Obchakevich, founder of Obchakevich Research, attributed the outflow to “profit-taking by investors in early 2025.” He explained that “at the end of the year, investors and funds often review their investment portfolios, which can lead to the sale of some shares.”
Industry Trends
U.S.-based BTC spot ETFs overall lost $248 million on January 2. IBIT was the top loser, followed by the Grayscale Bitcoin Trust (GBTC) with $23 million in withdrawals, the only other product to report a negative capital net flow.
Investor Sentiment
Isaac Joshua, CEO of token launch platform Gems, attributed the recent downturn to “end-of-year tax-loss harvesting by investors.” He explained that “many have liquidated both Bitcoin ETFs and the underlying asset itself to optimize their tax reports, a common phenomenon in financial markets during this period.”
Optimism for BlackRock’s Bitcoin ETF
Despite the outflow, investors remain optimistic about BlackRock’s Bitcoin ETF. Ryan Lee, chief analyst at the research subsidiary of crypto exchange Bitget, highlighted that “BlackRock’s Bitcoin ETF is poised to accelerate Bitcoin’s adoption by simplifying access for institutional investors, enhancing its legitimacy, and facilitating mainstream acceptance.”
Performance
IBIT surpassed $50 billion in assets under management just 228 days after its launch, more than five times faster than any other ETF in history. “By bridging traditional finance with cryptocurrency, the ETF is expected to stabilize BTC’s market perception and potentially reduce price volatility,” Joshua said.
Current Market Trends
As of press time, CoinMarketCap data indicates that Bitcoin is trading at just under $96,700, having gained 0.11% over the last 24 hours and 0.35% over the last seven days. The current price is nearly 10.7% lower than the all-time high of nearly $108,300 reported on December 17.
Conclusion
BlackRock’s Bitcoin ETF has seen a significant outflow in January, with investors opting to sell their shares. However, despite this, investors remain optimistic about the potential of the ETF to accelerate Bitcoin’s adoption and stabilize its market perception.
FAQs
What was the total outflow for BlackRock’s Bitcoin ETF on January 2?
$333 million
Why did investors opt to sell their shares?
Profit-taking and end-of-year tax-loss harvesting are the main reasons
How does BlackRock’s Bitcoin ETF perform compared to other ETFs?
IBIT surpassed $50 billion in assets under management just 228 days after its launch, more than five times faster than any other ETF in history
What is the current market trend for Bitcoin?
Bitcoin is trading at just under $96,700, having gained 0.11% over the last 24 hours and 0.35% over the last seven days
