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BlackRock Bitcoin ETF Had Its First Outflows Since January 2024

Key Points:

BlackRock Bitcoin ETF, IBIT, saw a $36.6 million outflow, leading a broader trend of U.S. spot Bitcoin ETFs experiencing a total outflow of $526.8 million.
Fidelity Wise Origin Bitcoin Fund and Grayscale Bitcoin Trust witnessed the largest outflows.
This coincided with Bitcoin’s price cooling between $60,000 and $70,000 in April, following record highs in the first quarter.

BlackRock Bitcoin ETF, known as IBIT on Nasdaq, faced a setback on Wednesday, according to data from Farside Investors.

BlackRock Bitcoin ETF Faces Significant Outflows

The preliminary data revealed that prices of several major spot Bitcoin ETFs closed at significant discounts to their underlying assets.

BlackRock Bitcoin ETF experienced approximately $36.6 million in outflows, as reported by HODL15 Capital. Meanwhile, other spot Bitcoin ETFs collectively recorded over $526.8 million in outflows.

Among the nine other Bitcoin ETFs, the Fidelity Wise Origin Bitcoin Fund (FBTC) witnessed the largest outflow, totaling $191.1 million, followed by the Grayscale Bitcoin Trust (GBTC) with $167.4 million.

This downturn marks the largest single outflow day for US spot Bitcoin ETFs. The ARK 21Shares Bitcoin ETF and Franklin Bitcoin ETF also experienced outflows of $98.1 million and $13.4 million, respectively.

The decline in the spot Bitcoin exchange-traded fund market comes amidst a cooling of the cryptocurrency’s price. In April, new U.S. ETFs witnessed $343.5 million worth of net outflows, ending a streak of three months of inflows.

Bitcoin Price Consolidates After Record Highs

The ETFs had previously experienced significant demand, with inflows of $1.5 billion, $6 billion, and $4.6 billion in January, February, and March, respectively. However, overall flows have slowed since reaching a peak of $1.05 billion in net daily inflows on March 12. Total net inflows for U.S. spot Bitcoin ETFs since trading began on Jan. 11 have now dipped below the $12 billion mark, standing at $11.8 billion.

Bitcoin, the leading cryptocurrency, traded predominantly between $60,000 and $70,000 in April, reflecting a subdued performance compared to the record highs reached in the first quarter.

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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.