While U.S. spot bitcoin exchange-traded funds (ETFs) faced significant outflows on Monday, BlackRock’s iShares Bitcoin Trust (IBIT) continued to attract fresh capital, showcasing resilience amid a recent decline in bitcoin’s price.
According to data from Farside, all U.S. spot bitcoin ETFs saw a combined outflow of $326.4 million on Monday, marking their largest daily withdrawal since late September. In contrast, IBIT defied this broader trend by recording new inflows of $134 million over the past two trading sessions, even as bitcoin’s price slid from roughly $122,000 to about $107,000.
This marks the 10th consecutive trading day in which IBIT has reported inflows, underscoring sustained investor interest. However, the pace of new investments has moderated recently. Whereas the first eight days recorded inflows exceeding $200 million daily, the latest two sessions reflected smaller yet meaningful inflows of $74.2 million and $60.4 million, respectively.
Historical data from Glassnode indicates that IBIT’s fund flows have typically aligned closely with bitcoin’s price movements, with inflows increasing during market rallies and outflows occurring during price downturns. Notably, since bitcoin hit an all-time high of $126,000 on October 6, followed by a roughly 20% correction, IBIT has maintained a trend of steady inflows, a contrast to other ETF providers that have seen redemptions or stagnant flows in the same period.
The weaker price movements coincide with a broader trend of deteriorating bitcoin performance during U.S. trading hours. According to data from Velo, bitcoin’s returns during U.S. market hours have softened significantly since early October. The cryptocurrency was gaining more than 10% during U.S. sessions in the initial days of the month, but this figure has since declined to just 1.7%. Despite this reduction, bitcoin still posts stronger returns during U.S. hours compared to European and Asian trading sessions, both of which have experienced negative returns over the past month.
Overall, the divergent behavior of BlackRock’s IBIT fund suggests distinct investor dynamics compared to other U.S. bitcoin ETFs amidst the recent market volatility and price retreat. While many platforms faced substantial outflows, IBIT’s ability to attract assets amid declining bitcoin prices highlights its prominent position in the market and ongoing investor confidence.
