BlackRock’s iShares Bitcoin Trust Faces Substantial Outflows
As of January 2, 2025, BlackRock’s iShares Bitcoin Trust (IBIT) experienced a substantial outflow of approximately $332.6 million, marking a notable move. With this, the suggestion of truth or falsehood from the CNFpost narrative about Coinbase and BlackRock rumored to suppress Bitcoin prices was brought to light.
This equates to around 3,413 BTC, representing the largest single-day withdrawal since the fund’s inception. This event also marked the third consecutive trading day of outflows for IBIT, totaling about $392.6 million over the past week.
As shared in a tweet post by Lookonchain, BlackRock deposited 3,296 BTC (approximately $254 million).
BlackRock deposited 3,296$BTC($254M) to#CoinbasePrime2 hours ago.https://t.co/qmuDIrP9mypic.twitter.com/Nb5cP3avCJ
— Lookonchain (@lookonchain)April 9, 2025
Contextualizing the Outflows
Despite this recent downturn, IBIT had a robust performance in 2024, attracting $37.2 billion in inflows, making it the third-highest among U.S. ETFs. BlackRock’s Ethereum ETF also garnered significant attention, amassing $3.53 billion during the same period. As of now, BlackRock holds approximately 548,505 BTC, valued at around $52.81 billion.
Market Implications and Investor Sentiment
Large outflows from major ETFs like IBIT can signal shifting investor sentiment. While some may interpret this as a lack of confidence in Bitcoin or the ETF’s strategy, others view it as routine portfolio rebalancing or profit-taking.
Interestingly, on the same day as IBIT’s significant outflow, other Bitcoin ETFs, such as those from Fidelity and Bitwise, recorded inflows of $36.2 million and $48.3 million, respectively.
Current Bitcoin Price and Market Conditions
Earlier, as CNF highlighted, BlackRock had already warned of a Bitcoin supply shock. While BlackRock’s IBIT has seen notable outflows recently, the broader market dynamics and Bitcoin’s price movements suggest a complex interplay of factors influencing investor behavior.
The broader cryptocurrency market has experienced volatility, influenced by geopolitical events and economic policies. For instance, recent tariff announcements by major economies have impacted investor sentiment, leading to fluctuations in crypto asset prices.
At the time of writing, Bitcoin (BTC) is trading at approximately $82,010, with an increase of 7.30% in the past week. This reflects a significant rise from its intraday low of $75,691, indicating resilience despite recent market fluctuations.