As a seasoned crypto investor with a decade-long journey under my belt, I’ve learned to navigate the cryptocurrency market’s ebb and flow with a steady hand. The recent outflow from the iShares Bitcoin Trust (IBIT) and other ETFs, including GBTC, is not a cause for alarm but rather an opportunity to re-evaluate one’s investment strategy.
Today marks the first time in nearly four months that the iShares Bitcoin Trust (IBIT) – a product from BlackRock, the global leader in asset management – has experienced withdrawals instead of inflows.
Information provided by Farside Investors indicates that investors in IBIT withdrew approximately 13.5 million dollars from the fund on August 29th. It’s worth noting that the last instance of a negative flow for the BlackRock spot Bitcoin exchange-traded fund (ETF) occurred on May 1st, with an outflow amounting to 36.9 million dollars. Since then, the fund has either seen investors adding funds or no changes in balance.
IBIT Sees First Daily Outflow Since May
Since its debut in May, BlackRock’s IBIT has taken the lead as the top Bitcoin ETF, surpassing the Grayscale Bitcoin Trust (GBTC) after 96 trading days. During this time, it became the largest spot Bitcoin ETF, managing assets valued at more than $19.7 billion and holding over 288,671 bitcoins.
At present, IBIT owns approximately 357,740 Bitcoins, with a total assets under management (AUM) of about $17.24 billion. This substantial value mainly results from Bitcoin’s current price being around 13% lower than when it was initially held.
As of May’s end, Bitcoin was approximately valued at $68,000. Currently, as per CoinMarketCap’s latest data, Bitcoin is being traded at around $59,200, showing a minor decrease in the last 24 hours.
ETFs on 3-Day Outflow Streak
Over the past three days, there has been a continuous withdrawal of funds from IBIT and a significant drop in Bitcoin’s value, coinciding with a streak of outflows in the U.S. spot Bitcoin ETF market. On August 27, these investment products experienced $127.1 million in withdrawals, followed by $105.3 million in negative flows on August 28, and another $71.8 million was taken out on August 29.
Over the past three days, it’s been quite a challenging time for me as a crypto investor, as most funds, such as Fidelity’s FBTC, Bitwise’s BITB, and Invesco Galaxy’s BTCO, have seen outflows or no activity. However, there was a glimmer of hope on August 29, when Ark Invest’s ARKB was the only fund to record inflows amounting to $5.3 million. This small influx offers a ray of optimism amidst the overall market downturn.
Grayscale’s GBTC experienced another withdrawal wave, as investors pulled out approximately $22.7 million. Over the past three days, the fund has recorded a net outflow of around $49 million.
Regardless of the recent downward trends, U.S. spot Bitcoin ETF markets collectively represent approximately 4.62% of bitcoin’s overall market value, according to SosoValue data. Since their inception, these funds have amassed a total net inflow of $17.78 billion and currently manage assets worth $50 billion in total.
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2024-08-30 14:05