All-time high? BlackRock BTC ETF sees $73 million outflow

Source: Blockchain Knight

BlackRock, a major player in the Crypto asset market, has undergone some changes after experiencing the largest outflow of funds in months.

BlackRock recorded an outflow of $72.7 million on December 20, ending the streak of inflows in its BTC ETF.

Data shows that the BlackRock BTC ETF (IBIT) has seen the largest outflow since its launch in January this year.

Farside Investors said that the global asset management company's BTC ETF had an outflow of 72.7 million in December, setting a record for IBIT.

Farside Investors added: "This happened the day after IBIT registered zero flow, which made investors anxious about the ETF."

Just one day before IBIT encountered the same predicament, Fidelity Smart BTC Fund (FBTC), also an ETF issuer, also recorded a record high outflow of $208.5 million on December 19.

Analysts said that on December 20, FBTC recorded another outflow of about $71.9 million, making the ETF experience outflows for two consecutive days.

IBIT and FBTC are among the best performing ETFs in the United States.

One month after listing, the two ETF issuers ranked first and second among the top 25 ETFs by assets.

Market observers said that the U.S. spot BTC ETF market has seen record outflows for two consecutive days, and record outflows from BlackRock and Fidelity have contributed to the situation.  

Data shows that the ETF market lost $671.9 million on December 19, and another $277 million flowed out the next day.

The massive outflows experienced by the two largest ETF issuers in the United States have raised concerns among Crypto asset investors about the prospects of ETFs in the coming months.

However, analysts believe that the difficulties faced by BlackRock and Fidelity should not surprise traders, as the two international asset management companies are largely responsible for the large inflows.  

Some investors worry that the recent development of ETFs may be a turning point, leading to a sharp drop in institutional investors' interest in BTC exposure.

Market observers believe that the outflows may not be sustained, adding that after BTC plunged to $92,710 earlier, the alpha Crypto asset has rebounded and is rising again.  

BTC's market volume slipped to $59.5 billion, with total trading volume down 52%, trading analysts said, which goes against the bull run of Crypto assets after Trump won the US election last month.  

During the bull run of Crypto assets, BTC reached an all-time high of $108,000 per coin in November.

In the same month, US spot BTC ETFs also benefited from the bull run of Crypto assets, with net inflows hitting a record high of $6.2 billion.