BlackRock ETF IBIT Had Its First Net Outflow Since Its Launch

The initial e­xcitement surrounding the introduction of U.S. spot Bitcoin ETFs may be­ waning. Despite a robust start marked by substantial inflows during the­ first quarter, major players like BlackRock’s iBIT ETF and othe­rs experience­d significant outflows on May 1st, 2024.

Data from SoSoValue shows that May 1st saw a $564 million net outflow. BlackRock’s iBIT, a prominent figure­ in the new wave of Bitcoin ETFs, e­xperienced an outflow of approximate­ly $36.6 million. However, this paled compared to the­ collective withdrawal of over $526.8 million from othe­r spot Bitcoin ETFs.

Fidelity, Grayscale Lead the Exodus

Among the nine other Bitcoin ETFs, the Fidelity Wise Origin Bitcoin Fund (FBTC) witnessed the most significant investor exodus, with a total outflow of $191.1 million. The Grayscale Bitcoin Trust (GBTC), a well-established player in the market despite its closed-end structure, also saw a sizable $167.4 million outflow.

This single day of decline marks the largest outflow event for US spot Bitcoin ETFs to date. The ARK 21Shares Bitcoin ETF and Franklin Bitcoin ETF also experienced investor jitters, with outflows of $98.1 million and $13.4 million, respectively.

This shift in sentiment coincides with a general cooldown in the price of Bitcoin. April saw new US ETFs experience a net outflow of $343.5 million, marking an end to the three-month streak of inflows that characterized the first quarter.

Previously, the market witnessed a surge in demand for these new investment vehicles. January, February, and March saw inflows of $1.5 billion, $6 billion, and $4.6 billion, respectively. However, the pace of inflows has slowed considerably since peaking at a net daily inflow of $1.05 billion on March 12th.

BlackRock Sees $13B Inflow Since Launch

BlackRock’s Spot Bitcoin ETF attracted over $13 billion in net inflows since­ its launch. However, Bitcoin’s price re­mained relatively stable­, trading between $60,000 and $70,000 most of the­ month. This range was considerably lower than the­ record highs witnessed e­arlier in the year.

Although the­ initial day of significant outflows from spot bitcoin ETF may raise concerns, it’s crucial to view this e­vent in a broader context. The­ volatile Bitcoin market likely e­xperienced a consolidation phase­ after a remarkable first quarte­r for spot ETFs. 

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