BlackRock Spot Bitcoin ETF Suffers $523 Million Outflows, Largest Since January 2024 Debut
BlackRock’s US spot Bitcoin ETF (exchange-traded fund) reported its largest net daily outflows since the product launch in January 2024.
In the latest trading session,the BlackRock iShares Bitcoin Trust (IBIT) saw $523.2 million net daily outflows, according to data from Farside Investors. This surpassed the previous record of $463 million that was seen less than a week ago on Nov. 14.
BlackRock’s Spot Bitcoin ETF Extends Outflows Streak
IBIT’s record outflows yesterday extended the fund’s negative flow streak to five days. Over the past trading week, the investment product has seen a total of $1.43 billion outflows.
IBIT’s latest outflows was also enough to cancel out the inflows seen by other funds yesterday. On the day, Franklin Templeton’s EZBC saw $10.8 million enter its reserves, while Grayscale’s BTC product posted $139.6 million net daily inflows yesterday. The remaining funds all recorded no new flows on the day.
US spot BTC ETF flows (Source: Farside Investors)
Despite the inflows for EZBC and BTC, the US spot Bitcoin ETFs extended their outflows streak to five days as well.
Over the past week, the worst day was on Nov. 13, when investors pulled $866.7 million from the funds. On this day, all of the funds except Valkyrie’s BRRR and WisdomTree’s BTCW recorded outflows. BRRR and BTCW saw no new flows then.
Bitcoin Plunges 12% In A Week
The continued outflows for IBIT coincides with a drop in the crypto market leader’s price. Over the past week, BTC’s value has plummeted more than 12%, data from CoinMarketCap shows.
Bitcoin’s price managed a slight gain over the past 24 hours to trade at $91,490.40 as of 6:20 a.m. EST, but still remains below the psychological $100K level that it dipped below in the last couple of days.
According to former BitMEX CEO Arthur Hayes, the Bitcoin price plunge is the result of reduced dollar liquidity in the market.
Commenting on BTC’s price drop below $90K at the start of the week, Hayes said that “Bitcoin is the free-market weathervane of global fiat liquidity.” He added that the crypto “trades on the expectation of future fiat supply.”
Hayes believes that BTC hovering around $90K while the S&P 500 and Nasdaq 100 stock indexes near all-time highs (ATHs) means that a “credit event is brewing.”
He subsequently argued that if stocks pullback by 10% to 20% and interest rates stay near 5%, then the US government will move to print more dollars. This predicted liquidity boost, according to Hayes, might cause Bitcoin’s price to “zoom” towards a price of $200K to $250K by the end of the year.
While Hayes is optimistic that a liquidity-fueled Bitcoin rally will ensue before the end of the year, many investors in the market remain fearful. The Crypto Fear & Greed Index currently stands on an “Extreme Fear” reading of 15/100. This is a slight improvement from yesterday’s 11/100 score, but still below the 29/100 score seen last month.
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