BlackRock's Bitcoin ETF Faces Major Setback with $332 Million Outflow

BlackRock’s Bitcoin ETF Records Its Largest Outflow

BlackRock's IBIT started the new year on a rough note, losing millions in net outflows on Thursday.

What to know:

• Data shows that BlackRock’s IBIT, which holds over $53 billion in net assets, saw over $332 million leave the fund.
• Thursday's tally exceeds the short-held previous record outflow of $188 million in late December.

The largest public fund tracking Bitcoin (BTC) recorded its highest outflows on Thursday, nearly one year after going live. BlackRock’s Nasdaq-listed IBIT, which holds over $53 billion in net assets, saw over $332 million leave the fund on Thursday, according to data source SoSoValue. These exceed a short-held previous record of $188 million in late December.

IBIT has recorded a string of outflows since December 20 for the first time in its history, with figures ranging from $17 million to as much as Thursday’s numbers.

Large outflows can signal a lack of confidence in the ETF's strategy, sector, or broader market segment. However, it could also be due to investors rebalancing their portfolios or taking profits, which is not necessarily a negative outlook on the ETF.

Other ETFs recorded inflows, with Bitwise’s BITB taking on $48 million and Fidelity’s FBTC taking in $36 million. Grayscale’s GBTC was the only other ETF with outflows at $23 million.

Bitcoin trades just under $97,000 at writing time, up 1.5% in the past 24 hours.