During the second week of January 2025, Bitcoin spot exchange-traded funds (ETFs) experienced substantial withdrawals as market turbulence persisted and affected investor confidence. On Tuesday alone, US-listed Bitcoin ETFs experienced an additional $209 million in outflows, making it the fourth straight day of net withdrawals.
Based on data from SoSoValue, it was primarily BlackRock’s iShares Bitcoin Trust (IBIT) that accounted for a large portion of the outflows experienced on Tuesday, suggesting a change in investor patterns. This fund, which had been a top performer among the 12 Bitcoin ETFs authorized by the US Securities and Exchange Commission (SEC) last year, seems to be slowing down in its growth.
BlackRock’s IBIT: From Dominance to Decline
In its first year since debut, BlackRock’s IBIT has gathered more than $50 billion in assets, surpassing rivals like Grayscale Investment’s Bitcoin Trust (GBTC) and Fidelity’s Wise Origin Bitcoin Fund (FBTC). According to Coinspeaker’s report, this rapid expansion makes IBIT one of the most successful exchange-traded fund (ETF) products on record in the crypto space.
To begin the new year, the fund has faced some tough circumstances. On January 3rd alone, IBIT experienced its biggest one-day withdrawal since it was established, amounting to a hefty $330 million. Interestingly, on the same day, Grayscale’s GBTC also saw substantial withdrawals, with a $23 million outflow during that specific period.
Over the course of this week, I’ve observed a consistent decline in the market. On Monday, a total net outflow of approximately $284.19 million was recorded across all 12 Bitcoin ETFs, with Fidelity’s FBTC taking the lead in these withdrawals. According to SoSoValue, the crypto investment product experienced a loss of over $113.64 million on that day alone.
Additionally, ARK 21Shares’ ARKB followed with outflows of $92.36 million.
Bitcoin ETFs like Grayscale’s GBTC and Bitwise’s BITB also contributed to the downward trend, with withdrawals amounting to $89.01 million for GBTC and $18.64 million for BITB. By Tuesday, BlackRock’s IBIT saw outflows of $219.48 million, indicating a rising uneasiness among investors about their investments in these ETFs.
During the same period, Bitwise Bitcoin ETF (BITB) ejected nearly $9 million in outflows.
Bright Spots amid the Outflows
Despite a generally pessimistic outlook on Bitcoin, some Exchange-Traded Funds (ETFs) defied this trend on Tuesday. For instance, ARK 21Shares’ ARKB saw an inflow of approximately $2.89 million, indicating a spark of investor curiosity. As of now, the fund holds about 0.23% of the total Bitcoin ETF market and has garnered net inflows amounting to $2.4 billion since its launch.
On January 14th, the VanEck Bitcoin ETF (HODL) and WisdomTree Bitcoin Trust (BTCW) both saw an increase in investment, totaling $5.46 million and $10.24 million respectively. These were the only two ETFs that attracted institutional investments on this day, providing a positive note amidst the broader trend of outflows.
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2025-01-15 14:25