As a seasoned researcher with over two decades of experience in the financial markets, I have seen countless trends come and go. The recent outflow from BlackRock’s iShares Bitcoin Trust (IBIT) is indeed an interesting development that warrants closer scrutiny.
Given my background, I can’t help but draw parallels between this event and the dot-com bubble of the late 90s, where hype and speculation often overshadowed fundamental analysis. However, unlike the dot-com bubble, Bitcoin is a fundamentally different asset class with unique properties that make it appealing to a wide range of investors.
The record outflow of $330.8 million from IBIT could be seen as just a blip in the grand scheme of things, especially when considering the massive inflows BlackRock’s funds saw last year. It is also worth noting that other players like Bitwise, Fidelity, and Ark 21Shares are seeing fund inflows, which suggests that investor interest in Bitcoin remains strong.
In terms of predictions for crypto ETFs in 2025, I am particularly intrigued by the prospect of combined spot BTC and Ether ETFs, as well as the potential for staking for spot Ether funds. If these trends materialize, it could indeed mark a significant shift in the way we approach and invest in cryptocurrencies.
Lastly, I’d like to add a bit of humor to lighten the mood. As a researcher who has lived through the dot-com bubble, the 2008 financial crisis, and now the rise of Bitcoin and other cryptocurrencies, I can’t help but think that the market will always find a way to surprise us. So, as we navigate this exciting world of crypto, let’s remember to keep our sense of humor intact – after all, it’s the only constant in a volatile market!
The largest withdrawal from the BlackRock’s iShares Bitcoin Trust (IBIT), which began trading a year ago, was recently noted – following the resumption of U.S. trading in January.
On January 2nd, as reported by Thomas Fahrer, CEO of a platform specialized in cryptocurrency reviews, there was an unprecedented withdrawal of $330.8 million, which is equivalent to over 3,500 Bitcoin (BTC), from BlackRock’s spot Bitcoin exchange-traded fund.
Since its launch in January 2024, this outflow has been the largest recorded, surpassing the previous high of $188.7 million set on December 24, as reported by Farside Investors.
The action takes place a day after markets closed on New Year’s Day and represents the third consecutive business day of withdrawals for the Bitcoin investment product, setting yet another record. Over the past seven days, BlackRock’s iShares Bitcoin Trust has experienced withdrawals totaling $391 million.
In 2024, despite recent withdrawals, BlackRock’s fund experienced significant growth as it ranked third among all U.S. exchange-traded funds in terms of inflows, with a total of $37.2 billion, according to data from Bloomberg, as reported by senior ETF analyst Eric Balchunas. This suggests that the outflows might have been just a temporary occurrence.
This year, the Vanguard 500 Index Fund (VOO) was the top-performing ETF, attracting a total of $116 billion in investments. The iShares Core S&P 500 ETF (IVV) followed closely behind, taking in $89 billion.
In simpler terms, Adam Back, a pioneer in Bitcoin, suggested that by the year 2025, Bitcoin Exchange-Traded Funds (ETFs) might lead the pack due to increased investments and higher price levels.
On January 2nd, Bitwise, Fidelity, Ark 21Shares, and Grayscale’s Bitcoin Mini Trust experienced significant investments, while BlackRock witnessed outflows contrary to the trend. Specifically, Bitwise, Fidelity, and Ark 21Shares attracted fund inflows of $48.3 million, $36.2 million, and $16.5 million respectively, whereas Grayscale’s Bitcoin Mini Trust saw a minor inflow of $6.9 million. However, Grayscale’s larger GBTC fund experienced an outflow of $23 million.
On Jan. 2, ETF Store president Nate Geraci made a few predictions for crypto ETFs in 2025.
He mentioned several upcoming developments: the debut of Bitcoin (BTC) and Ethereum (ETH) combined ETFs, options trading for ETH ETFs, ETFs for both BTC and ETH with in-kind creation and redemption, staking for Ethereum funds, and the approval of a Solana (SOL) ETF. He confirmed that all these events will indeed take place.
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2025-01-03 06:27