BlackRock's Bitcoin ETF Ends 31-Day Inflow Streak with Biggest Outflow Ever

BlackRock, the world's largest asset manager, has ended its remarkable 31-day spot Bitcoin exchange-traded fund (ETF) inflow streak with a staggering outflow of nearly $12.7 million more than its previous biggest outflow day. This unprecedented move marks a significant shift in sentiment among institutional investors and adds fuel to the ongoing debate about the impact of Bitcoin ETFs on market prices.

The iShares Bitcoin Trust (IBIT), BlackRock's flagship Bitcoin ETF, experienced its largest daily outflow on record, totaling $430.8 million on May 30. This figure surpasses the previous largest outflow day by a substantial margin, highlighting the significant changes in investor behavior over the past few weeks.

Industry Analysis

"What a run over the past 30+ days, though," said ETF analyst Nate Geraci in a post on X. Geraci pointed out that BlackRock is now pushing approximately $70 billion in Bitcoin holdings since it launched, marking an impressive increase in institutional interest.

Geraci's comments were echoed by Master Ventures founder Kyle Chasse, who noted that "every other issuer saw red" as the market experienced a wave of outflows on May 30. However, BlackRock continued to post inflows, leaving many wondering about the underlying reasons behind these decisions.

Expert Insights

"The sell-off isn't retail panic," said Chasse. "It's literally the quiet transfer of supply to the strongest hands." This assertion suggests that the outflows observed on May 30 were not solely driven by individual investors, but rather a collective decision made by institutional players.

Derive founder Nick Forster also weighed in on the topic, stating that despite significant inflows into Bitcoin ETFs, notably over $6.2 billion into BlackRock's iShares Bitcoin Trust in May, the spot price has not experienced a commensurate rise. "Despite significant inflows into Bitcoin ETFs, notably over $6.2 billion into BlackRock's iShares Bitcoin Trust in May, Bitcoin's price hasn't experienced a commensurate rise," Forster said.

Market Context

The 11 US spot Bitcoin ETFs recorded net outflows for the second consecutive day on May 30, totaling $616.1 million. This trend suggests that institutional investors are reassessing their exposure to Bitcoin in response to market fluctuations.

Bear in mind that Bitcoin's spot price is currently down 2.27% over the past 24 hours, according to CoinMarketCap data. The recent outflows from BlackRock and other institutions have sparked debate about the impact of these products on market prices and investor behavior.