Bitcoin investors pull $333M from BlackRock IBIT ETF in record outflow

BlackRock’s IBIT ETF Faces Largest Daily Outflow Since Launch

BlackRock’s iShares Bitcoin Trust (IBIT) witnessed its largest single-day outflow of $332.6 million on Jan. 2, marking a significant downturn as US markets reopened after the New Year holiday.

According to data from Farside Investors, this record outflow surpassed the previous high of $188.7 million recorded on Dec. 24, 2024.

Three Consecutive Days of Outflows for IBIT

The latest withdrawal capped a three-day streak of outflows—the longest and largest since the ETF’s launch—totaling $392.6 million in losses over the past week.

Despite the recent outflows, IBIT remained one of the top three ETFs by inflows in 2024, attracting $37.2 billion, according to Bloomberg data shared by senior ETF analyst Eric Balchunas.

Is the Outflow a Temporary Setback?

While the latest pullback may raise eyebrows, IBIT still secured its position as a leading ETF product last year.

Top ETF Inflows in 2024:

Vanguard 500 Index Fund – $116 billion
iShares Core S&P 500 ETF – $89 billion
BlackRock’s IBIT – $37.2 billion

Crypto pioneer Adam Back suggested that Bitcoin ETFs could potentially dominate inflows in 2025, especially as prices trend higher and adoption grows.

Competitor Bitcoin ETFs Buck the Trend

While BlackRock’s IBIT faced withdrawals, several other spot Bitcoin ETFs recorded inflows, signaling continued investor interest in the asset class.

Key Inflows on Jan. 2:

Bitwise Bitcoin ETF – $48.3 million
Fidelity Bitcoin ETF – $36.2 million
Ark 21Shares Bitcoin ETF – $16.5 million

In contrast, Grayscale’s GBTC posted an outflow of $23.1 million, although its Mini Trust Fund saw a $6.9 million inflow.

Net Market Movement

Overall, the total market outflow reached $242 million for the day, largely driven by BlackRock’s decline.

Crypto ETF Market Outlook for 2025

Bold Predictions for Crypto ETFs

Nate Geraci, president of ETF Store, shared several predictions for the crypto ETF market in 2025, anticipating:

Combined BTC and ETH ETFs entering the market.
Spot ETH ETF options trading approval.
In-kind creation and redemption models for Bitcoin and Ethereum ETFs.
Staking options for Ether-based ETFs.
Approval of a spot Solana ETF.

Geraci expressed confidence that these developments are likely to materialize in 2025, further fueling institutional adoption and investor enthusiasm.

What’s Next for Bitcoin ETFs?

While BlackRock’s IBIT experienced short-term turbulence, analysts believe broader trends remain bullish for Bitcoin ETFs and the crypto market in 2025.

With expectations for regulatory advancements, new product offerings, and higher institutional adoption, Bitcoin and other crypto ETFs could reclaim momentum in the months ahead.