BlackRock’s IBIT faces record withdrawals as Bitcoin ETFs log seventh consecutive day of net outflows

In a drama worthy of the ancients, there unfolded on the 26th of February a tale both tragic and comic—an epic wherein BlackRock’s IBIT, once the lion of the crypto jungle, found itself besieged, with the highest single-day withdrawals since its nascent days. Ah, Bitcoin ETFs in the United States, those glimmering vessels of hope, also partook in this saga, marking their seventh day of dwindling fortunes.

Like the tragic hero who watches his kingdom crumble, data from the fabled SoSoValue revealed that the twelve Bitcoin ETFs stood less robust on their feet, gagging under a yoke of $754.53 million in outflows on that fateful Wednesday, trailing the ignominious retreat of a billion dollars just a day prior.

Leading the retreat was BlackRock’s IBIT, like a boulder rolling down a hill, as $418.06 million slipped through its fingers—its highest exodus yet! Fidelity’s FBTC trailed closely behind, shedding $145.69 million and thus extending its own woeful streak of seven consecutive days of withdrawals.

In this lamentable procession of misfortune, none among the Bitcoin ETFs boasted gains, while others too suffered as follows:

  • ARK and 21Shares’ ARKB: $60.46 million
  • Grayscale’s mini Bitcoin Trust: $55.97 million
  • Grayscale’s GBTC: $22.66 million
  • Invesco Galaxy’s BTCO: $16.83 million
  • Bitwise’s BITB: $13.65 million
  • WisdomTree’s BTCW: $11.52 million
  • Franklin Templeton’s EZBC: $9.69 million

The grand bazaar of daily trading echoed with a staggering volume of $5.79 billion at that treacherous hour. Yet, despite the asphalt-lined streets of despair, the ETFs have, since their dawn, managed an impressive cumulative net inflow of $37.12 billion. Such irony! To flee with haste while holding fortune close.

In a musing echo rife with exasperation, ETF Store President Nate Geraci lamented to the ether of the internet on this very day, sharing his astonishment at Traditional Finance’s passionate disdain for Bitcoin and crypto, as if they were long-lost relatives disowning fortunes for sentiment’s sake.

Points of view abound, with Mr. Balchunas of Bloomberg raising an eyebrow over the conundrum. A tempest, indeed, as Bitcoin ETFs faced a relentless onslaught, with outflows of over a billion in a single dreadful day. Yet, a silver lining peeped through: these outflows represented a mere two percent of the total assets—essentially a mere whisper against the tempest of HODLing, which embraced a resounding 98%. Oh, the joys of modern finance!

In echoing his foresight, Balchunas sagely mused, “Like I said, it’s gonna be two steps [forward], one step back. Get used to it.” Sagacious words from one who peers into the kaleidoscope of price movements, forever spinning.

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2025-02-27 10:26