BlackRock Bitcoin ETF sees $13.5M in outflows.

BlackRock’s spot Bitcoin exchange-traded fund (ETF), the iShares Bitcoin Trust (IBIT), experienced net outflows of $13.5 million on August 29, marking its first major loss in four months. This downturn follows similar outflows in May, where the fund saw losses totaling $36.9 million. The outflows are notable given the ETF’s popularity among retail traders seeking Bitcoin exposure.

• This is the second instance this year where IBIT has registered outflows, surprising many in the market.
• Rival funds from Fidelity, Bitwise, and Grayscale also saw outflows, with a combined loss of $71.8 million on the same day.

Despite these outflows, market analysts remain unperturbed, viewing the losses as part of a broader trend tied to Bitcoin’s price decline over the summer. On August 29, Fidelity’s Wise Origin Bitcoin Fund reported $31.1 million in losses, while the Grayscale Bitcoin Trust (GBTC) faced over $22 million in net losses. In contrast, ARK 21Shares Bitcoin ETF was the only fund to report inflows, gaining $5.3 million.

Additionally, spot Ether ETFs, which debuted on the market in July, also suffered, recording $1.7 million in losses on August 29. The overall performance of these funds reflects ongoing market volatility and investor sentiment towards digital assets.