BlackRock Fund Drags Bitcoin ETFs Down by $65 Million in One Day

Bitcoin ETFs Fluctuations

U.S. spot Bitcoin exchange-traded funds recorded $65.4 million in net outflows Monday, with the entire amount coming from BlackRock's iShares Bitcoin Trust, while other tracked funds reported no net movements. BlackRock's fund, trading under the ticker IBIT, was the only one to record net withdrawals on October 12, according to Farside Investors data.

Market Impact

The withdrawals marked a reversal from October 9, when U.S. spot Bitcoin ETFs attracted $21.1 million in net investments, following several days of larger outflows earlier in the month. On October 7, the funds lost a combined $484.9 million, including $207.7 million from BlackRock's IBIT and $105.1 million from Fidelity's fund.

Investment Trends

Although Monday's withdrawals were concentrated entirely in IBIT, zero net flows at other funds do not mean investors stopped trading their shares. ETF flow data measure net creations and redemptions rather than all buying and selling on stock exchanges. Despite the recent withdrawals, IBIT has attracted approximately $65.67 billion in cumulative net inflows since its launch in January 2024.

Industry Context

Spot Bitcoin ETFs allow investors to gain exposure to Bitcoin through shares traded on conventional stock exchanges without directly purchasing or storing the cryptocurrency. BlackRock's iShares Bitcoin Trust ETF seeks to track Bitcoin's price performance and charges an annual sponsor fee.