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The Coin Rise 2025-01-03 12:25:12

BlackRock’s IBIT Records Massive Outflows Amid Bitcoin ETF Market Shifts

BlackRock’s spot Bitcoin ETF, IBIT started 2025 on a challenging note, registering its largest single-day outflow since its inception in January 2024. On January 2, following the New Year’s Day market closure, the Bitcoin spot funds saw investors withdraw a staggering $332.6 million, according to Farside Investors data. This outflow eclipsed the previous record of $188.7 million recorded on December 24, marking the third consecutive trading day of withdrawals for the fund. Over the past week alone, IBIT has experienced cumulative outflows of $392.6 million, raising questions about short-term investor sentiment in the Bitcoin ETF market. Despite this recent turbulence, IBIT remains a leader in the ETF space . In 2024, it ranked third among all U.S.-based ETFs in terms of net inflows, securing $37.2 billion, trailing only Vanguard’s 500 Index Fund and the iShares Core S&P 500 ETF. Competition in Bitcoin ETF Market While BlackRock’s flagship BTC fund faced substantial outflows, other BTC-focused ETFs showed resilience on January 2. Bitwise, Fidelity, and Ark 21Shares all recorded notable inflows of $48.3 million, $36.2 million, and $16.5 million, respectively. Grayscale’s smaller Bitcoin Mini Trust also saw a modest inflow of $6.9 million, though its primary fund, the Grayscale Bitcoin Trust (GBTC), witnessed outflows of $23.1 million. Collectively, Bitcoin ETF outflows across the market totaled $242 million for the day, with BlackRock’s withdrawals accounting for the majority, overshadowing gains made by competitors. Looking Ahead: Predictions for 2025 As the Bitcoin ETF market evolves, industry leaders are eyeing new trends and innovations. On January 2, Nate Geraci, president of ETF Store, outlined bold predictions for the crypto ETF landscape in 2025. Geraci forecasted the launch of combined spot Bitcoin and Ether ETFs, the introduction of spot Ether ETF options, and enhanced offerings like in-kind creation and redemption mechanisms. He also speculated on staking features for Ether ETFs and the potential approval of a spot Solana ETF . The post BlackRock’s IBIT Records Massive Outflows Amid Bitcoin ETF Market Shifts appeared first on TheCoinrise.com .

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