🔥 BlackRock’s Bitcoin ETF Records $332 Million Outflow
posted 3 Jan 2025
On January 2, 2024, BlackRock’s iShares Bitcoin Trust (IBIT) recorded a staggering $332.6 million outflow, the largest since its launch. According to SoSoValue, this event represents the most significant single-day outflow ever for a Bitcoin ETF.
Record Outflow from IBIT. Source: sosovalue.com
One likely cause of the outflows is investors locking in profits at the start of 2025. It's a common practice for investors and funds to rebalance their portfolios at the beginning of a new tax year, often involving the partial or full sale of certain assets.
On January 2, U.S. spot Bitcoin ETFs saw total outflows of $248 million. The largest contributor was BlackRock's IBIT, with a $332.6 million withdrawal, followed by Grayscale Bitcoin Trust (GBTC), which recorded a $23 million outflow.
Interestingly, the record outflow from IBIT exceeded the net losses reported for the day. This discrepancy is explained by inflows into other funds, which partially offset the losses from IBIT and GBTC.
Daily Fund Flows Across Bitcoin ETFs on January 2, 2024 Source: sosovalue.com
Another contributing factor to the record outflows from IBIT, also tied to fiscal considerations, could be year-end tax-loss harvesting.
This common financial strategy involves selling underperforming assets to reduce taxable gains from other investments, helping investors minimize their tax liability.
Currently, BlackRock remains the largest issuer of Bitcoin ETFs, managing $53.47 billion in assets. By comparison, the next largest product, Grayscale Bitcoin Trust (GBTC), manages $19.94 billion. Despite the recent outflows, BlackRock’s market dominance remains firmly intact.
More breaking news
