Bitcoin News Today: BlackRock Bitcoin Fund Sees $292.5M Outflow as Bitcoin Slides 8.5%

BlackRock’s iShares Bitcoin Trust (IBIT), the firm’s US-listed Bitcoin fund, recorded its largest outflow in nine weeks on Monday, with $292.5 million withdrawn from the fund. This marked the biggest withdrawal since May and followed a smaller outflow on Friday that ended a 37-day stretch of consistent inflows [1]. The move came as Bitcoin retreated from its July 14 all-time high, falling 8.5% over the weekend and reaching a low of $112,300 before bouncing to $115,000 by late Monday trading [1].

The recent outflow does not obscure the fund’s strong performance in July, as it saw a net inflow of $5.2 billion, accounting for 9% of the total inflows since its launch in January 2024 [1]. The iShares Bitcoin Trust has also surpassed 700,000 Bitcoin holdings, signaling continued institutional interest [1].

The broader spot Bitcoin ETF market saw a cooling of inflow momentum on Monday, with it marking the third consecutive day of net outflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) lost around $40 million, while the Grayscale Bitcoin Trust (GBTC) recorded a $10 million outflow. Bitwise (BITB) was the only fund to register a positive flow, gaining $18.7 million [1]. The outflows slowed as Bitcoin found support near $112,000, with Monday’s outflow significantly less severe than the $812 million withdrawal recorded on Friday [1].

Despite the recent outflows, the institutional digital asset market continues to show strength. According to Bloomberg ETF analyst Eric Balchunas, digital assets and hedge funds have attracted inflows amid weaker fundraising in private equity and credit sectors [1]. JPMorgan’s Nikolaos Panigirtzoglou noted a similar trend, with digital assets gaining market share in alternative investments [1]. Digital assets have become the fastest-growing segment in the alternatives space, drawing $60 billion in inflows by late July, compared to $85 billion in the previous year [1].

Balchunas also highlighted that the introduction of spot Bitcoin ETFs has contributed to reduced volatility in the asset. The 90-day rolling volatility of BlackRock’s IBIT recently fell below 40, down from over 60 at the ETF’s launch in early 2024 [1]. This decrease in volatility has made Bitcoin more appealing to institutional investors and strengthened its potential as a functional currency [1].

Source: [1] BlackRock Bitcoin Fund Experiences Largest Outflow in 9 Weeks (https://coinmarketcap.com/community/articles/6891b0e93ef53d6dd41fa1cb/)