BlackRock’s Bitcoin Fund Sees Largest Outflow Since May Amid Weekend Price Volatility

Key Points

1. BlackRock’s IBIT saw a $292.5 million outflow, the largest since May, influenced by Bitcoin’s price drop from its July peak and partial recovery.

2. US-listed spot Bitcoin ETFs had three consecutive days of outflows, with Fidelity’s FBTC losing $40 million and Grayscale’s GBTC losing $10 million, while Bitwise’s BITB attracted $18.7 million.

3. Bitcoin’s 90-day rolling volatility for IBIT dropped below 40, down from over 60 at launch, indicating reduced market volatility due to ETF adoption.

4. Spot Bitcoin ETFs have contributed to market stability by offering regulated and accessible investment options, attracting institutional investors.

5. Digital assets have attracted $60 billion in inflows through July 22, following a record $85 billion last year, according to Bloomberg ETF expert Eric Balchunas.