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coinpedia 2025-01-03 09:42:00

Bitcoin ETF Outflow Hits $332M: BlackRock’s iShares Trust Faces Largest Withdrawal Yet

The post Bitcoin ETF Outflow Hits $332M: BlackRock’s iShares Trust Faces Largest Withdrawal Yet appeared first on Coinpedia Fintech News Blackrock bleeding red? BlackRock’s iShares Bitcoin Trust (IBIT) saw a massive $332.6 million outflow on January 2, marking its largest withdrawal since launching a year ago. This came after U.S. markets reopened post-New Year’s Day, continuing a three-day streak of redemptions. The outflows for the week totaled a staggering $392.6 million, surpassing a previous record of $188.7 million on December 24. Despite these challenges, BlackRock’s Bitcoin ETF remains a heavyweight in the U.S. market. In 2024, it ranked third among all U.S.-listed ETFs for net inflows, attracting $37.2 billion, behind only Vanguard’s 500 Index Fund and iShares Core S&P 500 ETF. Looking at the scenario, Crypto analyst and expert Adam Back, predicts a Bitcoin ETF inflow comeback by 2025, especially if Bitcoin prices rise as expected. However before that there are some corrections also on the way as experts believe this is a normal thing for Bitcoin before attaining a new ATH. Competing ETFs See Gains The outflows pushed the US spot Bitcoin ETF market into the red, despite gains from competitors like Bitwise, Fidelity, and Ark 21Shares reported inflows of $48.3 million, $36.2 million, and $16.5 million, respectively, on January 2. Grayscale’s Bitcoin Mini Trust also gained $6.9 million, although its flagship GBTC fund saw a $23.1 million outflow. The broader crypto ETF market recorded $242 million in outflows that day, with BlackRock’s losses overshadowing gains by other funds. Moreover while on one hand, large outflows might signal negative sentiment over ETFs it can also mean investors are adjusting their portfolio or simply cashing on the profits. At the same time, Ethereum ETFs made good moves, with BlackRock and Fidelity leading inflows for Ether-focused funds. Grayscale’s Ethereum Mini Trust and Bitwise’s Ethereum ETF added notable contributions. Crypto ETFs’ 2024 Success Despite the recent downturn, 2024 was a banner year for U.S. spot Bitcoin ETFs, with over $35 billion in net inflows. BlackRock led the pack with $37.31 billion, followed by Fidelity and ARK’s Bitcoin ETFs. These figures far exceeded initial industry projections, cementing the popularity of crypto ETFs among investors. Ethereum ETFs also made waves, with BlackRock and Fidelity leading inflows for Ether-focused funds. Grayscale’s Ethereum Mini Trust and Bitwise’s Ethereum ETF added notable contributions. Top 5 2025 crypto ETF predictions in order of confidence… 1) Combined spot btc & eth ETFs launch (obvious) 2) Spot eth ETF options trading 3) Spot btc & eth ETF in-kind creation/redemption 4) Spot eth ETF staking 5) Spot sol ETF approved Actually, these all will happen. — Nate Geraci (@NateGeraci) January 2, 2025 Looking ahead, many crypto experts like Nate Geraci think there will be more innovation coming up in 2025 with a possibility of combined Bitcoin and ETH ETFs and Solana ETFs on the way the market is getting ready for a bigger bull ride.

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