BlackRock Bitcoin ETF (IBIT) Faces Another Outflow, This Time $13.5M

The broader market also saw significant redemptions, with all 11 U.S.-based Bitcoin ETFs witnessing a combined net withdrawal of $71.8 million on August 29.

BlackRock’s Bitcoin exchange-traded fund (ETF) faced a net outflow on August 29, marking another challenging day for Bitcoin ETFs.

What Happened: BlackRock’s iShares Bitcoin Trust ETF (NYSE:IBIT) recorded a net outflow of $13.5 million on August 29, according to data from ETF Flows. This follows an outflow of $36.9 million on May 1.

The broader market also saw significant redemptions, with all 11 U.S.-based Bitcoin ETFs witnessing a combined net withdrawal of $71.8 million on August 29.

Fidelity’s Wise Origin Bitcoin Fund (NYSE:FBTC) had the highest outflow of $31.1 million. Grayscale’s Bitcoin Trust (NYSE:GBTC) came in second with a $22.7 million outflow, while the $13.5 million outflow from IBIT was the third largest of the day.

However, IBIT reported a net inflow of $224.1 million just a few days before, on August 26. This was the biggest inflow to IBIT since July 22, when it recorded net inflows of $526.7 million.

The recent outflow is likely due to investors’ sentiment during a general bear market of Bitcoin prices.

ARK Bitcoin ETF Gains $5.3M Amid Decline: The only fund that recorded a net inflow on August 29 was Cathie Wood’s ARK 21Shares Bitcoin ETF (NYSE: BITO). It pulled in $5.3 million, the complete opposite of the redemptions seen in other Bitcoin ETFs.

However, this inflow proves investors’ confidence in ARK’s fund even if the overall market is down. The performance of Bitcoin ETFs on August 29 also illustrates the instability of cryptocurrency markets.

Such outflows were noticed while the price of Bitcoin declined by 3.43% within the past week, at a value of $58,751 per coin as of writing this article on CoinMarketCap.

Grayscale Ethereum Trust Faces $5.3M Outflow: It was not only Bitcoin ETFs that witnessed outflows, as US-based spot Ether ETFs also saw small net outflows of $1.7 million on August 29. The Grayscale Ethereum Trust (NYSE:ETHE) saw a $5.3 million outflow, which followed the pattern of daily redemptions since the product’s launch in July.

On the other hand, the Grayscale Ethereum Mini Trust (NYSE:ETH) recorded a relatively small net inflow of $3.6 million, which could not even come close to the losses recorded for the other products with higher fees.

Ether’s price also followed the same trend, trading 5.64% lower on a weekly basis at $2,517.06. This could have been the case to some extent, leading to the outflows witnessed in Ether ETFs.

The sustained outflows from the Grayscale Ethereum Trust also indicate that investors are still cautious in the cryptocurrency market.