Record outflows as BlackRock's BTC ETF sees $73 million in daily outflows

Text: bitcoinist

Translation: Blockchain Knight

BlackRock, a major player in the crypto asset market, has seen a shift after experiencing its largest outflow in months.

BlackRock recorded $72.7 million in outflows on December 20, ending a streak of consecutive inflows for its BTC ETF.

Data shows that BlackRock's BTC ETF (IBIT) saw its biggest outflow since the fund’s launch in January this year.

Farside Investors reported that the global asset manager’s BTC ETF experienced $72.7 million in outflows during December, marking IBIT’s highest single-day outflow record.

Farside Investors added: "This occurred just one day after IBIT registered zero flow, causing investor anxiety about the ETF."

One day before IBIT faced this situation, Fidelity's Wise Origin BTC Fund (FBTC) also saw a record-breaking outflow of $208.5 million on December 19—the largest in its history.

Analysts noted that FBTC again recorded approximately $71.9 million in outflows on December 20, marking two consecutive days of capital outflows from the ETF.

IBIT and FBTC are among the top-performing ETFs in the United States.

Within a month of listing, these two ETF issuers ranked first and second respectively among the top 25 ETFs by assets under management.

Market observers say the back-to-back record outflows from U.S. spot BTC ETF markets have been amplified by the unprecedented withdrawals from BlackRock and Fidelity.

Data indicates the ETF market lost $671.9 million on December 19, followed by another $277 million in outflows the next day.

The massive outflows experienced by the two largest ETF providers in the U.S. have raised concerns among crypto investors about the ETF outlook over the coming months.

However, analysts believe the challenges facing BlackRock and Fidelity should not come as a surprise to traders, as both international asset managers were largely responsible for the massive inflows earlier.

Some investors worry that recent developments in ETFs could become a turning point, leading to a significant decline in institutional interest in BTC exposure.

Market watchers suggest the outflows may not persist, noting that after BTC briefly plunged to $92,710, the alpha crypto asset rebounded and resumed its upward trajectory.

Trading analysts reported that BTC market volume dropped to $59.5 billion, with total trading volume falling 52%, contrasting sharply with the bullish momentum seen across crypto assets following Trump’s U.S. election victory last month.

During the crypto bull run, BTC reached an all-time high of $108,000 per coin in November.

In the same month, U.S. spot BTC ETFs also benefited from the bull market, achieving a record-high net inflow of $6.2 billion.