Bitcoin Investors Pull $331 Million from BlackRock’s IBIT ETF in Record Outflow

BlackRock’s iShares Bitcoin Trust (IBIT), a spot Bitcoin exchange-traded fund (ETF) launched in January 2024, has experienced its largest outflow to date, with investors pulling a staggering $330.8 million—more than 3,500 Bitcoin—on January 2, 2025. This record outflow comes as U.S. markets resumed trading following the New Year’s Day holiday and marks the third consecutive day of outflows for the product, setting yet another record.

The $330.8 million withdrawal eclipses the previous record outflow of $188.7 million, which occurred just a week prior on December 24, 2024. According to Thomas Fahrer, CEO of Apollo, a crypto-focused reviews platform, these outflows reflect broader investor sentiment during the post-holiday period. Over the past week, the iShares Bitcoin Trust has seen a total of $391 million in outflows.

Despite these significant withdrawals, the recent outflows may be viewed as a temporary blip in BlackRock’s broader ETF performance. In 2024, the iShares Bitcoin Trust ranked third in total inflows among all U.S. exchange-traded funds, attracting $37.2 billion in new capital. For context, the top two ETFs for the year were the Vanguard 500 Index Fund (VOO), with $116 billion in inflows, and the iShares Core S&P 500 ETF (IVV), which received $89 billion in inflows.

Some industry figures remain optimistic about the future of Bitcoin ETFs. Bitcoin pioneer Adam Back suggested that in 2025, Bitcoin ETFs could rise to the top spot in terms of inflows and prices. He noted that the current outflows from BlackRock’s product could be a short-term trend, with future price increases likely to attract more investment into Bitcoin ETFs.

Other Bitcoin Funds See Inflows Amid BlackRock's Decline

While BlackRock faced a record outflow, other firms in the crypto ETF space reported inflows. Bitwise saw $48.3 million in inflows, while Fidelity and Ark 21Shares experienced $36.2 million and $16.5 million in inflows, respectively, on January 2. Grayscale’s Bitcoin Mini Trust also saw a minor inflow of $6.9 million, although its larger Bitcoin Trust (GBTC) fund experienced a $23 million outflow.

The combined total outflow from Bitcoin-related ETFs for the day amounted to $242 million, with BlackRock’s IBIT product absorbing a significant portion of the market’s outflow. Despite these shifts in capital, the broader crypto ETF market remains dynamic, with continued growth in other funds signaling investor interest in the space.

What Lies Ahead for Bitcoin ETFs in 2025?

Looking to the future, the year 2025 could see further developments in the crypto ETF market. ETF Store President Nate Geraci made several predictions for the year ahead, including the potential launch of combined spot Bitcoin and Ether ETFs, spot Ether ETF options trading, and the approval of a spot Solana ETF. Geraci confidently stated that these developments are likely to materialize, suggesting a growing market for diversified crypto ETFs.

As the crypto ETF market continues to evolve, investors and industry watchers alike will be keeping a close eye on both the performance of BlackRock’s iShares Bitcoin Trust and the broader sector’s ability to adapt to regulatory and market changes. With Bitcoin’s potential for higher prices and increased institutional interest, 2025 may bring new opportunities for both investors and fund managers alike.