Bitcoin ETFs Bleed $1B in Record Outflows Amidst Market Panic

BlackRock's iShares Bitcoin Trust ETF (IBIT) experienced record-breaking outflows on Tuesday, with a total of $418 million leaving the fund in a single day, according to data from SoSoValue. This figure significantly surpasses the outflows recorded by competing products, with the Fidelity Wise Origin Bitcoin Fund (FBTC) losing $145 million, the ARK 21Shares Bitcoin ETF (ARKB) losing $60.46 million, and the Grayscale Bitcoin Mini Trust ETF (BTC) losing $55.97 million.

The overall outflows reached $754.53 million on Wednesday, with Tuesday's outflows exceeding $1 billion for the first time. This trend comes amidst an extremely negative market sentiment, as the Fear and Greed Index, a popular tracker of market sentiment, has now plunged to just 10, the lowest level since 2022. On Wednesday, the leading cryptocurrency, Bitcoin, collapsed to $82,455 but has since recovered to $89,191.