BlackRock's IBIT Fund Records Largest Daily Outflow

On January 2nd, the BlackRock-managed IBIT fund experienced its largest daily outflow to date, marking a significant shift in the market as Bitcoin exchange-traded funds (ETFs), totaling 12 funds, saw an aggregate outflow of $242.3 million. This decline coincided with the resumption of trading in U.S. markets, further highlighting the volatility that often accompanies market reopenings.

According to data from SoSoValue, the IBIT fund alone saw outflows of $332.62 million on that day, setting a new record for the largest outflow since its launch on January 11, 2024. This marked the continuation of a negative trend, as the fund experienced a streak of outflows over three consecutive days, with total withdrawals reaching $392.6 million—a new record for the fund's history.

Despite the significant withdrawals, analysts suggest that the downturn may be temporary. The IBIT fund continues to hold a strong market position, ranking third in terms of net inflows among U.S. ETFs in 2024, with a remarkable total of $37.2 billion in inflows. This performance follows behind only the Vanguard 500 Index Fund (VOO), which recorded $116 billion, and the iShares Core S&P 500 ETF (IVV), with $89 billion in inflows, as reported by Bloomberg analyst Eric Balchunas on January 2nd.

In contrast to the outflows seen in BlackRock's IBIT, other funds in the market experienced inflows on the same day. The BITB fund from Bitwise attracted $48.31 million in inflows, while Fidelity's FBTC fund saw $36.2 million in new investments. The ARKB fund from Ark 21Shares also recorded inflows of $16.54 million.

Additionally, the Grayscale Bitcoin Mini Trust and VanEck's HODL fund both posted modest inflows, with $6.89 million and $5.51 million, respectively. On the other hand, Grayscale's larger GBTC fund experienced outflows of $23.13 million.

The total daily trading volume for these Bitcoin-focused investment products surged to $3.24 billion on January 2nd, a significant increase from the previous day's volume of $2.25 billion. This uptick highlights the ongoing interest and volatility within the Bitcoin ETF market.

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