Bitcoin’s incredible rally in 2024 paused as institutional investors reduced their positions. BlackRock’s iShares Bitcoin Trust ETF (IBIT), a spot Bitcoin fund, reported its biggest single-day outflow since its launch, with $333 million withdrawn yesterday (Thursday), according to Bloomberg data.
Third Consecutive Day of Outflows
The withdrawal marked the third straight day of outflows for the fund, highlighting a shift in sentiment. IBIT, which launched in January, had become popular among institutional investors, a factor that pushed Bitcoin to a record high of $108,315 in mid-December.
However, by year-end, the once unstoppable fund began to lose momentum. The decline in IBIT’s inflows reflects a broader trend across the cryptocurrency sector.
[BREAKING] #BlackRock’s iShares Bitcoin Trust (IBIT) saw a record outflow 🔴$332.6M (-3,413 BTC) on the first trading day of 2025!This surpassed the ETF’s previous low of $188.7M (-1,933 BTC) on December 24, 2024.In 2024, BlackRock saw cumulative inflows of $37.2B for its… pic.twitter.com/CGQhI3niKb
— Spot On Chain (@spotonchain) January 3, 2025
Since December 19, Bitcoin-focused exchange-traded funds in the U.S. have reportedly recorded net outflows of approximately $2 billion. Additionally, open interest in Bitcoin futures on the Chicago-based CME Group fell nearly 20% from its December peak.
This decline in outstanding contracts, often used to gauge institutional demand, represents a shift in market dynamics as investors reassess their risk exposure.
Year-End Portfolio Adjustments
Market analysts attribute the outflows to year-end portfolio adjustments by institutional investors. These adjustments come as Bitcoin trades nearly 11% below its December high, at $96,423 today (Friday).
While significant, the pullback is not unusual following a year of explosive gains for the cryptocurrency. Despite the record outflows, BlackRock has reportedly not issued a statement regarding the trend. Bitcoin’s retreat, coupled with reduced institutional activity, suggests the digital asset’s meteoric rise in 2024 may face a more measured pace in the months ahead.
Expect ongoing updates as this story evolves.
This article was written by Jared Kirui at www.financemagnates.com.CryptoCurrencyRead More
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