BlackRock’s Bitcoin ETF (IBIT) saw a massive $72.7 million outflow on December 20th – its biggest ever since launching in January. This followed a day of zero activity, leaving some investors worried.
Record Outflows Across the Board
It wasn’t just BlackRock feeling the pinch. Fidelity’s Wise Origin Bitcoin Fund (FBTC) also experienced record outflows, hitting $208.5 million on December 19th and another $71.9 million the following day. These two ETFs, usually top performers, were part of a larger trend. The US spot Bitcoin ETF market saw a whopping $671.9 million outflow on December 19th and another $277 million on the 20th.
Investor Concerns and Market Analysis
The huge outflows from BlackRock and Fidelity have some investors concerned about the future of Bitcoin ETFs. They worry this could signal a decrease in institutional investment in Bitcoin. However, analysts aren’t panicking. They point out that these firms were responsible for the large inflows earlier, and that the recent price drop might be temporary. Bitcoin’s price has been recovering after a dip to $92,710.
Bitcoin’s Trading Volume Takes a Hit
Interestingly, Bitcoin’s trading volume dropped significantly to $59.50 billion – a 52% decrease. This is a bit surprising, given the recent price increases following Donald Trump’s election win last month. Bitcoin had hit an all-time high of $108,000 in November, and the US spot Bitcoin ETF saw record inflows of $6.2 billion that same month.
Current Bitcoin Status
At the time of writing, Bitcoin is trading at around $95,359, down slightly (1.3%) in the last 24 hours. Its total market capitalization sits at $1.9 trillion.
