One of the major players in the cryptocurrency market has found itself on an unusual side of history after experiencing its largest outflows in months.
Leading asset manager BlackRock has ended the series of inflows for its Bitcoin exchange-traded fund after recording outflows of $72.7 million on December 20.
Biggest flow ever
The BlackRock Bitcoin ETF (IBIT) saw its largest outflow since its launch in January this year, data showed.
according to Persian investorsthe global asset manager’s Bitcoin ETF recorded an outflow of 72.7 million in December, the highest level on record for IBIT. This came a day after IBIT recorded zero inflows, making investors worried about the exchange-traded fund, they added.
Source: Farside Investors
IBIT is not alone, as ETF issuer Fidelity Wise Origin Bitcoin Fund (FBTC) also achieved an all-time high level of outflows of $208.5 million on December 19, a day before IBIT suffered the same ordeal.
The next day, December 20, FBTC recorded another outflow of about $71.9 million, causing the electronic funds transfer to suffer a two-day string of outflows, analysts said.
IBIT and FBTC are two of the best-performing ETFs in the US. ETF issuers ranked first and second among the top 25 ETFs by assets after one month on the market.
Market observers said that the United States Spot Bitcoin ETF The record market outflow on two consecutive days was driven by all-time high outflows seen by BlackRock and Fidelity.
The ETF market lost $671.9 million on December 19 and another $277 million in outflows the next day, December 20, the data showed.
Some investors are worried
The massive outflows experienced by two of the largest US ETF issuers have raised concerns among crypto investors about what the outlook for ETFs could be in the coming months.
However, analysts believe that the plight faced by BlackRock and Fidelity should not surprise traders given that both international asset management firms are largely responsible for the large inflows.
Some investors are concerned that the recent development in ETFs may become a turning point that could lead to a significant decline in institutional investors’ appetite for exposure to Bitcoin.
Market watchers argued that the outflows may not continue, adding that after Bitcoin fell to $92,710 earlier, Alpha encryption It was bouncing and moving up again.
Decrease in Bitcoin volume
Bitcoin’s market size fell to $59.50 billion, a 52% decline in its total volume, which contrasts with the bullish trend enjoyed by cryptocurrencies after Donald Trump won the US election last month, trading analysts said.
During the cryptocurrency bull run, Bitcoin reached an all-time high of $108,000 per coin in November.
In the same month, the US Spot Bitcoin ETF also benefited from the bullish cryptocurrency market after reaching a record $6.2 billion in net inflows.
As of press time, Bitcoin is trading at $95,359 For each currency, down 1.3% over the past 24 hours, with a total market cap of $1.9 trillion.
Featured image from CNN, chart from TradingView