Originally published on: August 30, 2024
**BlackRock’s Bitcoin ETF Records Second Day of Significant Outflows**
BlackRock’s iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF) faces a notable setback as it experiences its second-ever day of outflows, with a reported $13.5 million net outflow on August 29. This marks a significant contrast to its previous $36.9 million net outflow on May 1, making it a challenging period for the popular ETF. According to Farside Investors data, this outflow event also marked the worst day in terms of outflows for Bitcoin ETFs collectively, totaling a substantial $563.7 million.
**Competitive Landscape: Top Performers amid Outflow Trends**
In a competitive environment, BlackRock’s fund ranked third in outflows, following the Fidelity Wise Origin Bitcoin Fund (FBTC) with $31.1 million and the Grayscale Bitcoin Trust (GBTC) with $22.7 million in net outflows. This downturn for the IBIT comes shortly after it enjoyed a substantial net inflow of $224.1 million on August 26, marking its largest inflow since July 22.
**Outlook and Market Trends**
Moreover, amidst the pattern of outflows, the ARK 21Shares Bitcoin ETF (ARKB) emerged as the sole beneficiary on August 29, witnessing $5.3 million in net inflows. These developments occur against the backdrop of a general decline in Bitcoin’s price, which has seen a 3.43% decrease over the last seven days, now trading at $58,751 at the time of writing, according to CoinMarketCap data.
**Ether ETFs and Market Dynamics**
On a related note, US-based Ether ETFs saw minor outflows of $1.7 million collectively on August 29, with several funds showing no activity. Among the nine Ether ETFs, seven reported zero flows on that day. The Grayscale Ethereum Mini Trust (ETH) notably stood out by registering a modest net inflow of $3.6 million. However, this was insufficient to counter the $5.3 million outflows observed in its higher-fee counterpart, the Grayscale Ethereum Trust (ETHE), which has been facing challenges since its launch in July.
**Price Fluctuations: Impact on Ether**
Notably, the price of Ether has also witnessed a downturn, declining by 5.64% over the past week to reach $2,517.06, as reported by CoinMarketCap. These market dynamics underscore a period of volatility and shifting investor sentiment within the cryptocurrency landscape.
**Conclusion**
The recent outflow trends in both Bitcoin and Ether ETFs reflect a period of market uncertainty and shifting investor preferences, highlighting the need for a cautious approach amid ongoing price fluctuations. Stay tuned for further updates on these developments as the cryptocurrency market continues to evolve.
