Institutional investors seem to be rethinking their crypto strategies as Bitcoin ETFs face a wave of withdrawals this January.
The second week of January 2025 has witnessed significant outflows from Bitcoin spot exchange-traded funds (ETFs) as market volatility continues to impact investor sentiment. On Tuesday, US-listed Bitcoin ETFs recorded an additional outflow of $209 million, marking the fourth consecutive day of net outflows.
According to data from SoSoValue, BlackRock’s iShares Bitcoin Trust (IBIT) contributed a lion’s share of Tuesday’s outflows, signifying a shift in investor behavior. The fund, which had previously been a standout performer among the 12 Bitcoin ETFs approved by the US Securities and Exchange Commission (SEC) last year, appears to be losing momentum.
BlackRock’s IBIT: From Dominance to Decline
Since its launch just 12 months ago, BlackRock’s IBIT has amassed over $50 billion in Assets Under Management (AUM), outpacing competitors such as Grayscale Investment’s Bitcoin Trust (GBTC) and Fidelity’s Wise Origin Bitcoin Fund (FBTC). As reported by Coinspeaker, this remarkable growth positioned the crypto investment vehicle as one of the most successful ETF products to date.
However, the fund has started the new year on a challenging note. On January 3, IBIT experienced its largest single-day outflow since its inception, with $330 million withdrawn. That same day, Grayscale’s GBTC also suffered significant withdrawals during the same period, recording $23 million in outflows.
This downward trend persisted into this week. On Monday, the combined net outflows across all 12 Bitcoin ETFs totaled $284.19 million, with Fidelity’s FBTC leading the charge. Data from SoSoValue shows that the crypto investment product lost more than $113.64 million.
Additionally, ARK 21Shares’ ARKB followed with outflows of $92.36 million.
Other Bitcoin ETFs such as Grayscale’s GBTC and Bitwise’s BITB also added to the negative momentum, seeing withdrawals of $89.01 million and $18.64 million, respectively. By Tuesday, BlackRock’s IBIT alone accounted for $219.48 million in outflows, underscoring the growing investor apprehension.
During the same period, Bitwise Bitcoin ETF (BITB) ejected nearly $9 million in outflows.
Bright Spots amid the Outflows
Despite the overall bearish sentiment, some Bitcoin ETFs bucked the trend on Tuesday. According to SoSoValue’s data ARK 21Shares’ ARKB reported inflows of $2.89 million, signaling a glimmer of investor interest. Currently, the fund commands a 0.23% share of the Bitcoin ETF market and has achieved cumulative net inflows of $2.4 billion since launch.
VanEck Bitcoin ETF (HODL) and WisdomTree Bitcoin Trust (BTCW) also followed a similar trend, attracting positive inflows of $5.46 million and $10.24 million, respectively. These funds were the only ETFs to secure investments from institutional investors on January 14, offering a silver lining amid the broader outflow trend.
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