BlackRock’s iShares Bitcoin Trust (IBIT) recorded a $292.5 million withdrawal, marking its largest single-day outflow since May amid recent Bitcoin price fluctuations. This movement signals a potential cooling of institutional interest following Bitcoin’s retreat from its July peak and subsequent partial recovery.
US-listed spot Bitcoin ETFs collectively faced net outflows for three consecutive days. While Fidelity’s FBTC experienced a $40 million withdrawal and Grayscale’s GBTC shed $10 million, Bitwise’s BITB defied the trend with an $18.7 million inflow, reflecting divergent investor strategies.
Despite the recent exits, Bitcoin’s 90-day rolling volatility for IBIT has decreased significantly to below 40, a notable drop from over 60 during the ETF’s launch period. This data points to increased market stability, partially attributed to the maturation of regulated spot Bitcoin ETFs that have broadened institutional participation.
Spot Bitcoin ETFs continue to enhance market accessibility, serving as key vehicles for institutional exposure. Bloomberg ETF analyst Eric Balchunas notes that digital assets have attracted $60 billion in inflows year-to-date through late July, building on the record $85 billion inflows observed during the previous year.