Bitcoin News Today: BlackRock's IBIT Sees $292.5M Outflow as Bitcoin Dips 8.5%

BlackRock’s iShares Bitcoin Trust (IBIT) has experienced its largest outflow in nine weeks, with $292.5 million leaving the fund on Monday, marking the biggest withdrawal since May 2024 [1]. The outflow followed a 37-day inflow streak that ended with a smaller withdrawal on the previous Friday. The reversal came as Bitcoin’s price dipped nearly 8.5% to $112,300 over the weekend before recovering slightly to $115,000 by late Monday trading [1].

The outflow from BlackRock’s fund is part of a broader trend of reduced inflows into U.S.-listed Bitcoin ETFs. Fidelity’s Wise Origin Bitcoin Fund (FBTC) saw a $40 million outflow, while Grayscale’s Bitcoin Trust (GBTC) recorded a $10 million outflow. Bitwise’s Bitcoin ETF (BITB) was the only other major product to see inflows, with $18.7 million entering the fund [1]. The cumulative outflows suggest a cooling off period for the spot Bitcoin ETF market after months of sustained inflows.

The decline in demand coincided with a drop in Bitcoin’s price, which fell 3.6% to $114,500 from its recent high of $119,800 [1]. Analysts attributed the outflow to profit-taking and a more hawkish outlook from the Federal Reserve, both of which have dampened investor sentiment. The broader trend was reflected in global crypto funds, which saw $223 million in outflows for the first time in 15 weeks [2].

Despite the recent outflows, the year-to-date inflow into Bitcoin ETFs remains robust at $20 billion, showing that long-term demand for institutional Bitcoin exposure is still strong [2]. BlackRock’s IBIT had seen a net inflow of $5.2 billion in July alone, accounting for 9% of its total inflows since launching in January 2024 [1].

The outflow also appeared to be linked to a drop in stablecoin activity on the Tron network. USDT transfers from Binance on Tron fell by 35% to $1.3 billion in the same period, down from approximately $2 billion [1]. The timing of this decline suggests a potential correlation between institutional selling pressure and movements in stablecoin flows, particularly on Tron, which is known for its fast and low-cost transactions [1].

Market observers noted that while the ETF outflows signal a short-term shift in sentiment, the broader institutional interest in digital assets remains intact. Bloomberg ETF analyst Eric Balchunas highlighted that digital assets and hedge funds have outperformed other alternative asset classes in terms of inflows this year, despite the slowdown in private equity and private credit fundraising [1]. JPMorgan’s Nikolaos Panigirtzoglou echoed this view, noting that the digital asset segment has seen a significant acceleration in inflows, attracting $60 billion through July 22 [1].

Furthermore, Balchunas observed that Bitcoin volatility has dropped significantly since the launch of spot ETFs in January 2024. The 90-day rolling volatility for IBIT is now below 40, compared to over 60 when the ETFs were first introduced [1]. This decline in volatility has helped Bitcoin attract larger institutional investors and has improved its prospects as a potential store of value and medium of exchange [1].

However, crypto analyst Josh Olszewicz forecast that Bitcoin may remain range-bound until October 2025, citing ongoing macroeconomic uncertainties and regulatory risks [1]. Meanwhile, CoinShares suggested that if Bitcoin captures just 2% of global M2 or 5% of gold’s market cap, its price could rise to $189,000 [1]. These projections, however, remain speculative and are not confirmed by current market behavior.

Source:

[1] [NewsBTC](https://www.newsbtc.com/news/bitcoin-etf-market-ibit-outflows-tron-usdt-transfers/)

[2] [TheBlock](https://www.theblock.co/post/365385/global-crypto-funds-outflows-first-time-15-weeks-profit-taking-hawkish-fed-coinshares)

[3] [FXEmpire](https://www.fxempire.com/forecasts/article/xrp-news-today-sec-chair-atkins-fuels-hope-for-appeal-withdrawal-vote-btc-at-115k-1538775)