BlackRock's IBIT Sees Record Outflow
BlackRock's IBIT Experiences Significant Outflow
On May 30th, BlackRock's iShares Bitcoin Trust (IBIT) saw its largest single-day outflow to date, with investors withdrawing $430.8 million. This marked the end of a 31-day inflow streak and the first net withdrawal in over seven weeks.
IBIT Remains a Leader in Bitcoin ETF Inflows
Despite the recent outflow, IBIT's performance remains impressive. In May alone, the fund attracted $6.5 billion, making it one of the strongest months since its launch in January 2024. Within 18 months, IBIT has risen to become one of the top 25 US-listed ETFs by assets under management, a feat described by many as unprecedented.
Furthermore, IBIT ranks among the top five ETFs for year-to-date inflows across over 4,200 US-listed funds. This sustained success, even during periods of market uncertainty, highlights its enduring appeal.
Institutional Demand Drives IBIT's Success
Analysts attribute IBIT's strong performance to growing institutional demand for Bitcoin. Bloomberg ETF analyst Eric Balchunas noted that IBIT recently absorbed over 100% of net Bitcoin ETF inflows, a significant shift from its typical 70% share. This suggests a recent rally was driven more by institutional buying than retail investment.
This institutional interest is fueled by factors such as inflation concerns, economic uncertainty, and improved US regulatory clarity. Bitcoin is increasingly viewed as a hedge against fiat devaluation and systemic risk, leading corporations and nation-states to include it in their treasury strategies.
Bitcoin's Price Performance
In May, Bitcoin's price surged to a record high above $111,000, reflecting the growing influence of institutional capital. While the price has since retreated to around $105,000, the overall trend suggests a continued strong interest in the cryptocurrency market.
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