BlackRock Bitcoin ETF sees record daily outflow as cryptocurrency rally pauses
- Traders pulled $333 million from BlackRock’s iShares Bitcoin Trust ETF on Thursday, representing a record daily outflow.
- This marks the third consecutive day of outflows, and is the longest stretch ever for the fund.
- Bitcoin has been on a tear since Trump won the election but has slowed in recent weeks.
BlackRock’s Bitcoin ETF saw record outflows yesterday, as the cryptocurrency took a breather from its dramatic rally.
Investors pulled $333 million from the iShares Bitcoin Trust ETF on Thursday, representing a record daily outflow since the fund debuted last January, according to Bloomberg data. The losses also lead to a three-day losing streak, the longest period of consecutive outflows on record.
Bitcoin and the broader cryptocurrency market began a major rally in the wake of Donald Trump’s election victory in November.
Trump, a vocal advocate of cryptocurrencies on the campaign trail, elected many of them Encryption advocates To lead his administration in the weeks following his victory, helping push Bitcoin over the key Threshold of $100,000 For the first time ever in early December.
I hit the coin Highest level ever of $108,315 in mid-December, representing a 59% increase since Election Day, while IBIT is up about 54% over the same period.
But since peaking in the middle of last month, the rise has slowed. Bitcoin’s price fell 3.2% in December, its first monthly decline since August, while daily outflows from BlackRock’s ETFs reached a record high of $189 million on December 24 before the latest decline.
Other Bitcoin ETFs are also seeing outflows. According to Bloomberg data, the broader group of ten bitcoin ETFs has seen net outflows totaling about $2 billion since December 19.
Some of that selling came after Federal ReserveThe Fed’s latest meeting, which led to a 25 basis point interest rate cut coupled with hawkish expectations for further easing next year.
Chairman Jerome Powell’s hawkish stance, along with comments from other Fed officials in recent weeks, have dampened traders’ appetite for risk and their hopes for more risks. Easing monetary policy next year.
