- BlackRock’s Bitcoin ETF saw record outflows of $332.6M on Jan 2, totaling $392.6M for the week, surpassing December’s $188.7M.
- Competing funds like Bitwise, Fidelity, and Ark 21Shares gained $48.3M, $36.2M, and $16.5M on Jan 2, despite broader market outflows.
- Ethereum ETFs showed strength as BlackRock and Fidelity led inflows, while the broader crypto ETF market lost $242M on Jan 2.
BlackRock’s iShares Bitcoin Trust (IBIT) experienced a significant $332.6 million outflow on January 2. This marked its largest single-day withdrawal since its launch a year ago. The outflow coincided with the reopening of U.S. markets after the New Year holiday.
Apparently, the trend continued for three consecutive days, bringing the total weekly outflows to $392.6 million. This surpassed the previous record of $188.7 million on December 24.
Competing Crypto ETFs Witness Mixed Results
However, despite BlackRock’s challenges, other crypto funds reported inflows on the same day. Bitwise, Fidelity, and Ark 21Shares recorded inflows of $48.3 million, $36.2 million, and $16.5 million, respectively. Meanwhile, Grayscale’s Bitcoin Mini Trust gained $6.9 million, although its flagship GBTC fund saw a $23.1 million outflow.
In addition, the broader crypto ETF market experienced $242 million in total outflows, primarily driven by BlackRock’s performance. Market analysts suggest that these withdrawals could indicate profit-taking or portfolio rebalancing.
However, the broader implications for the crypto ETF sector remain unclear as other funds continue to attract investor interest.
Ethereum ETFs Show Resilience Amid Bitcoin ETF Outflows
Moreover, while Bitcoin ETFs faced turbulence, Ethereum-focused funds exhibited a stronger performance. BlackRock and Fidelity led the charge in Ethereum inflows, reflecting a growing interest in diversified crypto investments. Grayscale’s Ethereum Mini Trust and Bitwise’s Ethereum ETF also contributed significantly to this trend.
In 2024, U.S. spot Bitcoin ETFs collectively reported over $35 billion in net inflows, setting a new record. BlackRock maintained its leading position, attracting $37.31 billion. This was followed by Fidelity and ARK’s Bitcoin ETFs. These figures underscore the rising popularity of crypto ETFs, despite periodic setbacks.
