Bitcoin ETFs Bleed $242M, BlackRock Takes a $332M Hit in Massive Outflow

Market Jitters: $242M Drains From U.S. Bitcoin ETFs, BlackRock Feels the Heat

The U.S. Bitcoin ETF landscape experienced a tumultuous day on Thursday, Jan. 2, 2025, as $242.30 million flowed out of 12 funds, per data from Sosovalue. BlackRock’s flagship ETF, IBIT, bore the brunt of the sell-off, with a staggering $332.62 million withdrawal, marking one of its largest single-day outflows. Grayscale’s GBTC wasn’t spared, shedding $23.13 million.

Despite the turbulence, other ETFs demonstrated resilience. Bitwise's BITB attracted $48.31 million in inflows, Fidelity’s FBTC gained $36.20 million, and Ark Invest’s ARKB pulled in $16.54 million. These inflows, while noteworthy, weren’t sufficient to offset the losses from IBIT and GBTC.

Bitcoin ETFs' Current Standing

As of Jan. 2, Bitcoin ETFs collectively manage $109.43 billion in BTC holdings, accounting for 5.68% of the cryptocurrency’s total market capitalization. Since Jan. 11, 2024, net inflows into Bitcoin ETFs stand at $35 billion, reflecting the overall health of institutional interest despite recent fluctuations.

Ether Funds Also Take a Hit

The ripple effects extended to ether (ETH) ETFs, which collectively lost $77.51 million. Bitwise’s ETHW led the outflows, dropping $56.11 million, while Grayscale’s ETHE followed with $21.4 million in losses. The remaining seven ether funds remained steady, collectively managing $12.44 billion, representing 2.99% of Ethereum’s total market cap.

Shifting Investor Sentiment

These sharp inflows and outflows reveal a dynamic crypto investment landscape as institutional and retail investors recalibrate strategies in response to market conditions. While major players like BlackRock felt the sting of large withdrawals, the resilience of other ETFs underscores the sector's complexity and adaptability.

Looking Ahead

The crypto ETF space continues to capture the attention of investors navigating volatile markets. The interplay between Bitcoin and Ethereum ETF activity serves as a bellwether for broader market sentiment, offering insights into how capital flows shape the evolving crypto economy.