BlackRocks Spot Bitcoin ETF Sees First Outflow Since May Ominous Sign For Bitcoins Price?
BlackRocks spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), suffered a setback on Thursday, with investors withdrawing over $13 million as Bitcoin price slipped under $59,000. This marks the first time since May 1 that the fund has hemorrhaged more investor money than it has pulled in.
BlackRocks IBIT Posts Second-Ever Outflow
BlackRocks iShares Bitcoin Trust, a Nasdaq-listed exchange-traded fund (ETF) closely tracking the crypto kings spot price, has notched outflows for the second time ever since its debut in mid-January amid signs of waning demand.
IBIT, which is the largest spot Bitcoin ETF by assets under management, recorded shocking net outflows of approximately $13.5 million on Aug. 29, according to data collected by London-based investment management firm Farside Investors.
BlackRocks losses came as investors collectively removed roughly $71.8 million from the 11 U.S.-listed spot Bitcoin ETFs on Thursday marking the third straight day of negative outflows for the professional funds.
Spot BTC ETFs, which give traditional investors exposure to the alpha crypto without the hassles of buying and storing it, were unexpectedly greenlighted by the U.S. Securities and Exchange Commission (SEC) in January after over a decade of rejections.
Investors yanked $22,7 million from Grayscales spot Bitcoin ETF on Thursday, while Fidelitys FBTC lost $31.1 million, per Farside data. Meanwhile, Bitwises BITB saw roughly $8.1 million exit the fund. ARK and 21Shares Bitcoin fund ARKB were the only ones to record net inflows of $5.3 million.
The days-long trend in outflows from spot Bitcoin ETFs comes amid a crypto market-wide downturn despite favorable rate cut signals and constant endorsements from former United States President Donald Trump. Bitcoins price has dropped 7.9% over the past week to change hands for $59,201 as of press time, according to CoinGecko.
For some Bitcoin holders, these withdrawals could be a cause for concern as they are a sign of professional investors leaving the market. The big question now is, is this a temporary setback or the beginning of a bigger trend?
That being said, traders can expect prices to continue trading sideways as we move into September sans any bullish catalysts in the near future.
Text source: ZyCrypto
