The financial world was taken aback as BlackRock’s iShares Bitcoin Trust (IBIT) faced a significant outflow of $332.6 million on January 2, 2024. This marked the largest withdrawal since its inception a year ago, and it followed the reopening of U.S. markets after the New Year’s Day holiday. The trend continued over a three-day period, culminating in a total weekly outflow of an astounding $392.6 million. This figure surpasses the previous record of $188.7 million set on December 24, 2023.
BlackRock’s Resilience Amidst Challenges
Despite these substantial outflows, BlackRock’s Bitcoin ETF holds a formidable position in the U.S. market. In 2024, it ranked third among all U.S.-listed ETFs in terms of net inflows, attracting $37.2 billion. It trailed only behind Vanguard’s 500 Index Fund and iShares Core S&P 500 ETF. This performance underscores the enduring appeal of BlackRock’s ETF among investors, even amidst a volatile market environment.
Anticipating Bitcoin ETF Inflows by 2025
According to crypto analyst and expert Adam Back, there is optimism for a resurgence in Bitcoin ETF inflows by 2025. He suggests that if Bitcoin prices rise as anticipated, investors may return to ETFs in droves. However, Back also notes that some market corrections are expected, which is typical for Bitcoin as it potentially approaches a new all-time high.
Competing ETFs See Gains
While BlackRock faced significant outflows, other players in the U.S. spot Bitcoin ETF market saw favorable outcomes. Competitors such as Bitwise, Fidelity, and Ark 21Shares reported inflows of $48.3 million, $36.2 million, and $16.5 million, respectively, on the same day. Grayscale’s Bitcoin Mini Trust also saw an inflow of $6.9 million, even though its flagship GBTC fund experienced a $23.1 million outflow.
The broader crypto ETF market witnessed $242 million in outflows that day. Despite these losses, the outflows from BlackRock overshadowed the gains by other funds. It is worth noting that large outflows might not solely indicate negative sentiment towards ETFs; they could also suggest that investors are rebalancing their portfolios or cashing in on profits.
Ethereum ETFs Make Strides
At the same time, Ethereum ETFs experienced positive momentum. BlackRock and Fidelity led the way in inflows for Ether-focused funds, with Grayscale’s Ethereum Mini Trust and Bitwise’s Ethereum ETF making significant contributions to market activity.
Crypto ETFs’ 2024 Success
Despite recent challenges, 2024 was a landmark year for U.S. spot Bitcoin ETFs, boasting over $35 billion in net inflows. BlackRock spearheaded this trend with $37.31 billion, followed closely by Fidelity and ARK’s Bitcoin ETFs. These figures far exceeded initial industry projections, cementing crypto ETFs’ popularity among investors.
Ethereum ETFs also made significant progress, with BlackRock and Fidelity leading the charge in Ether-focused fund inflows. Grayscale’s Ethereum Mini Trust and Bitwise’s Ethereum ETF contributed notably to the overall success.
Top 5 Predictions for Crypto ETFs in 2025
Looking forward, numerous crypto experts, including Nate Geraci, predict further innovation in 2025. The potential introduction of combined Bitcoin and Ethereum ETFs, alongside Solana ETFs, suggests the market is gearing up for a significant bull run. The following are some key predictions for 2025:
Combined Spot Bitcoin & Ethereum ETFs Launch
Spot Ethereum ETF Options Trading
Spot Bitcoin & Ethereum ETF In-Kind Creation/Redemption
Spot Ethereum ETF Staking
Spot Solana ETF Approval
These developments signal a promising future for cryptocurrency ETFs, offering investors innovative options as the market continues to evolve.
