Breaking: BlackRock Bitcoin ETF Records Largest Outflow Since Launch

The US Spot Bitcoin ETF has ended its 16-day inflow streak this week, as the crypto market recorded a massive pullback. Amid this, BlackRock Bitcoin ETF (IBIT) recorded its highest outflow since launch, sparking concerns among investors. Simultaneously, Fidelity’s FBTC also witnessed the largest decline earlier this week, which reflected the waning risk-bet appetite of the investors.

BlackRock Bitcoin ETF Records Largest Outflow Ever

The recent crypto market crash has weighed on the investors’ sentiment, as evidenced by the significant pullback in digital assets. Amid the recent Bitcoin crash, the US Spot Bitcoin ETFs also recorded outflow this week, ending their 16-day inflow streak on December 18.

BlackRock Bitcoin ETF (IBIT) has recorded its highest outflow of $72.7 million on Friday, December 20, Farside Investors data showed. This comes a day after Fidelity’s FBTC recorded an outflux of $208.5 million, its largest outflow ever since the investment instruments were launched in the US on January 2024. The overall outflow of the US Spot BTC ETF was $671.9 million and $277 million on December 19 and December 20, respectively.

Meanwhile, Bitcoin has recorded a robust rally this year, especially after Donald Trump’s election win in November. It touched a new all-time high of $108K earlier this month, amid soaring optimism toward the US Bitcoin Strategic Reserve. On the other hand, other global leaders like the Europe also hinted towards a similar move ahead.

Simultaneously, corporations have also increased their focus on the investment instrument. For context, MicroStrategy has continued its BTC buying strategy, reflecting its growing confidence in the asset. Besides, Bitcoin miners like MARA, Hut 8, and others also accumulated massive BTC. Despite that, these recent outflows from BlackRock Bitcoin ETF and others appeared to have weighed on the investors’ sentiment.

What’s Next For BTC?

The recent outflow recorded in BlackRock Bitcoin ETF and others has fueled speculations over what lies ahead for the investment instrument. In addition, it also indicates that institutional interest could be waning in the digital assets space.

However, it appears that the recent selloff was primarily due to the US Fed’s recent hawkish remarks with their rate-cut plans ahead. For context, the US Fed has announced another 25 bps rate cut this month while hinting towards a hawkish move ahead with their rate cut plans.

Considering that, the broader financial sector has declined, let alone the crypto market. However, despite the short-term pullback, experts remained confident about the long-term trajectory of Bitcoin as well as the US spot Bitcoin ETF.

Bitcoin price today surged nearly 5% and exchange hands at $98,431, after touching a low of $92,175 in the last 24 hours. However, despite the surge, CoinGlass data showed Bitcoin Futures Open Interest stayed near the flatline, indicating that the investors are yet to enter the market at a full pace.