BlackRock’s spot Bitcoin exchange-traded fund (ETF) experienced a significant turnaround on Friday, attracting $231.6 million in inflows. This follows a challenging period marked by heavy outflows over the preceding two days, during which the iShares Bitcoin Trust ETF (IBIT) faced a total of $548.7 million in withdrawals. These developments occurred amid heightened volatility in the cryptocurrency market, where sentiment reached new lows, leading to a brief drop in Bitcoin’s price to $60,000 on Thursday.
According to preliminary data from Farside, inflows across nine U.S.-based spot Bitcoin ETF products summed up to $330.7 million, recovering somewhat from a collective outflow of $1.25 billion experienced over three consecutive days. Such flows are watched closely by Bitcoin holders and market participants alike, as they often signal shifts in investor sentiment and can provide insights into future price movements. Currently, Bitcoin’s value has dipped 24.30% in the past month, with the price hovering around $69,820 at the time of this report, as per CoinMarketCap.
On Thursday, IBIT reportedly set a new daily trading volume record, with shares worth approximately $10 billion changing hands, as noted by Bloomberg ETF analyst Eric Balchunas. Despite this activity, IBIT suffered a sharp decline of 13% that day, marking its second-largest daily drop since launching; the worst recorded was a 15% dip on May 8, 2024.
However, Friday’s trading saw a recovery for IBIT, which rebounded by 9.92% to close at $39.68, according to Google Finance. Analyst James Seyffart observed that while Bitcoin ETF holders are currently experiencing significant losses—averaging around 42% as Bitcoin prices fall below $73,000—the most recent outflows are minimal compared to the substantial inflows witnessed at the market’s previous peak. Before the downturn in October, net inflows into these ETFs were approximately $62.11 billion; they have since decreased to around $55 billion.
