BlackRock Bitcoin ETF Sees First Day of Outflows, Analysts Remind Us it's "Norm"

BlackRock saw $36.9 million flow out of its Bitcoin ETF yesterday as the market saw its largest day in the red

, and Blockhead

2 May 2024 . 3:30 PM

2 min read

BlackRock iShares Bitcoin Trust (IBIT) has recorded its first day of outflows since its launch in January.

$36.9 million flowed out of the fund on 1 May, contributing to overall net outflows of $526.8 million. Fidelity Wise Origin Bitcoin Fund (FBTC) saw the largest outflows of $191.1 million while Grayscale Bitcoin Trust (GBTC), which has seen outflows since its launch, saw $167.4 million exit the fund.

BREAKING: The initial #Bitcoin Spot ETF hype is now definitely stagnating. For the first time ever, BlackRock's iShares Bitcoin Trust sees an outflow after a phenomenal streak. pic.twitter.com/TqeINbcCxs
— sunnydecree (@sunnydecree) May 2, 2024

The red day, which is the highest single-day outflow for Bitcoin ETFs, comes as Bitcoin continues to fall below $60,000. Over the past five days, Bitcoin has slipped almost 10%.

However, analysts are reminding the market to stay calm. "$IBIT has its first outflow day of its existence. Ruff day to be a #bitcoin ETF," tweeted Bloomberg ETF analyst, James Seyffart, before adding, "these ETFs are operating smoothly across the board. Inflows and outflows are part of the norm in the life of an ETF."

Should add — these ETFs are operating smoothly across the board. Inflows and outflows are part of the norm in the life of an ETF.
— James Seyffart (@JSeyff) May 2, 2024

ETF Store president Nate Geraci also highlighted how iShares Gold ETF and SPDR Gold ETFs have seen $1 billion and $3 billion in outflows respectively so far this year, but yet gold is up 16% YTD.

So, iShares Bitcoin ETF has first day of outflows ($37mil)…

Has taken in $15+bil ytd.

For perspective, iShares Gold ETF has $1bil *outflows* this yr.

SPDR Gold ETF has $3bil outflows.

And gold is up 16% ytd.

This is what ETFs do. Inflows don’t go up in straight line.
— Nate Geraci (@NateGeraci) May 2, 2024

On 30 April, Hong Kong's Bitcoin and Ethereum ETFs debuted but to a rather disappointing start. Hitting just $12 million in trading volume, inflows paled in comparison to the US's $4.6 billion first day.