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Investors pull out $333 million from BlackRock’s Bitcoin ETF in largest outflow since launch
- Investors pulled $333 million from BlackRock’s Bitcoin ETF in a single day, the biggest outflow since its launch.
- The fund, which helped Bitcoin hit $108,315 in 2024, now faces a three-day losing streak.
- Bitcoin ETFs across the U.S. have seen $2 billion in outflows since December 19.
Investors just ripped $333 million out of BlackRock’s iShares Bitcoin Trust ETF (IBIT) in a single day. It’s the largest withdrawal the fund has seen since its blockbuster launch last year.
This wasn’t a one-off either—Thursday was actually the third straight day of outflows, the longest losing streak for a fund that started 2024 as the darling of institutional investors.
IBIT has brought in $37 billion in new cash since its January debut. It even helped push Bitcoin to a historic all-time high of $108,315 in mid-December. But just a few weeks later, the ETF is bleeding money as Bitcoin’s rally takes a breather.
The apex crypto now trades at $96,421 (an 11% drop from its ATH) and the broader group of U.S. based Bitcoin ETFs has seen $2 billion in net outflows since December 19.
Adding to the pressure, Bitcoin futures contracts on the CME Group—a key indicator of institutional demand—have dropped 20% since their December peak.
BlackRock’s long road to Bitcoin domination
Larry Fink, BlackRock’s CEO, once dismissed Bitcoin as a tool for money laundering. In 2017, during an infamous interview with CNBC, he compared Bitcoin’s frenzy to the Dutch tulip mania. By 2018, he doubled down, saying that BlackRock’s clients “had zero interest in crypto,” calling for more regulation in the industry.
But things started to change a bit in 2019. BlackRock quietly began building its digital asset strategy, bringing on Robbie Mitchnick, a former Ripple exec, to head the division. A year later, the company made its first big crypto play, investing in Circle, the company behind the USDC stablecoin.
By 2022, BlackRock was all in. It partnered with Coinbase, allowing institutional clients to trade crypto through its Aladdin platform, and later announced a spot Bitcoin trust designed specifically for institutional investors.
Then came 2024 when the SEC approved IBIT. Within weeks of its debut, the ETF became the first spot Bitcoin fund to hit $1 billion in trading volume. By October, it managed $30 billion in assets, holding over 417,000 Bitcoin—roughly 2% of the total supply.
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Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
Jai Hamid
Jai Hamid has been covering crypto, stock markets, technology, the global economy, and the geopolitical events that affect markets for the past 6 years. She has worked with blockchain-focused publications including AMB Crypto, Coin Edition, and CryptoTale on market analyses, major companies, regulation, and macroeconomic trends. She has attended London School of Journalism and thrice shared crypto market insights on one of Africa’s top TV networks.
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