TL;DR
- BlackRock: The iShares Bitcoin Trust (IBIT) saw a record $333 million in capital outflows, marking the largest withdrawal since its launch.
- The outflows occurred amid a three-day streak of negative flows, with IBIT managing over $53 billion in assets and attracting $37 billion in net inflows during 2024.
- Bitcoin’s price recently reached $98,700, about 11% below its all-time high, as institutional demand, measured by Bitcoin futures open interest, decreased by 20% since December.
BlackRock has recorded a significant capital outflow from its iShares Bitcoin Trust (IBIT), which reached $333 million in a single day, marking the largest withdrawal since its launch.
The outflow coincides with a streak of three consecutive days of negative flows, something that had not occurred before. IBIT, which closed 2024 as the largest spot Bitcoin fund in the market, manages over $53 billion in assets and attracted $37 billion in net inflows during the past year.
The impact of IBIT on the market was impressive, contributing to Bitcoin’s all-time high of $108,315 in December 2024. However, the recent decline in flows could signal a period of pause after a year of record gains for the cryptocurrency. In the broader picture, other Bitcoin-based funds in the United States have seen net outflows totaling around $2 billion since mid-December, suggesting that institutions are adjusting their portfolios as the fiscal year ends.
BlackRock and the Market Adjust Heading into 2025
In addition to the capital outflows, open interest in Bitcoin futures contracts on CME Group, a key indicator of institutional demand, has fallen by 20% since its peak in December. These movements are linked to risk management strategies and accounting adjustments that typically occur at the end of the year. According to industry experts, this behavior is not unusual and could reverse in the coming months, depending on market conditions.
Currently, Bitcoin is trading at approximately $98,700, about 11% below its all-time high. Although this decline can be interpreted as a natural correction. Some analysts believe it reflects a temporary adjustment in the market dynamics after a period of high performance.
BlackRock has not issued any comments regarding the recent capital outflows, leaving the interpretation of the events open. However, the magnitude of the withdrawals underscores the influence of IBIT on the crypto market and its ability to shape trends in the sector
