By Key Points
- BlackRock IBIT Bitcoin ETF records a $330.8M outflow, its largest yet.
- Competing ETFs from Fidelity, Ark, and Bitwise see net inflows.
- IBIT retains 551,000 BTC, holding 2.38% of the total Bitcoin supply.
- BlackRock remains committed to Bitcoin and Ethereum ETF growth.
On January 2, 2025, BlackRock’s IBIT Bitcoin ETF saw an unprecedented $330.8 million outflow, its largest since launching.
This massive exit, equivalent to over 3,500 BTC, far exceeds its previous record of $188.7 million set just a week earlier on December 24, 2024.
Despite this, the BlackRock IBIT Bitcoin ETF remains the largest player in the Bitcoin ETF space, holding 551,000 BTC—about 2.38% of the total Bitcoin supply.
The fund’s expense ratio of 0.25% allows it to generate approximately $112 million in annual revenue, further solidifying its industry leadership.
3/5: BlackRock’s IBIT Bitcoin ETF Hits Record $330 Million Outflow Since Launch#BTChttps://t.co/Lw22jCRVYZ
— FollowinMaxi10Inu (@Followin_GPT) January 3, 2025
Competing ETFs Gain Momentum
While the BlackRock IBIT Bitcoin ETF saw significant outflows, competitors capitalized on the opportunity.
Fidelity, Ark, and Bitwise Bitcoin ETFs recorded inflows of $36.2 million, $16.54 million, and $48.31 million, respectively, on the same day.
These inflows suggest that investors might be diversifying their Bitcoin exposure, though it’s worth noting that IBIT remains unmatched in terms of size and influence.
BlackRock’s Strategy: Bitcoin First
The BlackRock IBIT Bitcoin ETF success story is rooted in its laser focus on Bitcoin and Ethereum.
Jay Jacobs, BlackRock’s head of ETFs, emphasized in December 2024 that the firm has no plans to introduce altcoin ETFs, doubling down instead on the growth of its existing Bitcoin and Ethereum products.
This approach has paid off. Since its launch, the IBIT ETF has set several records as the fastest-growing ETF in history, not just in crypto but across all asset classes.
Bloomberg analyst Eric Balchunas described IBIT as the “gold standard” of ETFs, praising its unparalleled rise.
Moreover, BlackRock analysts advocate including Bitcoin in traditional investment portfolios, suggesting an allocation of 1-2% within a 60/40 investment framework.
This endorsement has helped build confidence among institutional investors in Bitcoin’s role as a hedge and long-term store of value.
Challenges and Opportunities Ahead
Although the BlackRock IBIT Bitcoin ETF has faced three consecutive days of outflows, with $391 million exiting the fund in the past week, analysts remain optimistic.
The sheer size of IBIT’s Bitcoin holdings and its efficient structure provide a strong foundation for recovery and continued growth.
As competitors continue to innovate and attract inflows, BlackRock’s strategy of focusing on Bitcoin and Ethereum could either consolidate its position or leave room for challengers to capitalize on diversified crypto investments.
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