As the largest spot Bitcoin fund with over US$53 billion in assets and nearly US$37 billion in inflows, IBIT proved a major hit with institutional investors after a January launch and helped push the largest digital asset to an all-time high of US$108,315 in mid-December.
The tapering of flows to IBIT is another sign of Bitcoin’s record-breaking run in 2024 taking a breather. The group of a dozen Bitcoin exchange-traded funds in the US have posted a net outflow of about US$2 billion since Dec 19, according to data compiled by Bloomberg.
Open interest — or outstanding contracts — for Bitcoin futures hosted by Chicago-based CME Group, seen as a measure of US institutional demand, also fell nearly 20% from its December peak.
See also: Alexander Hamilton’s three lessons for stablecoins
“The outflows and decreased open interest is expected with institutions paring back risk and window dressing for year-end balance sheet adjustments,” said Paul Howard, senior director at crypto market maker Wincent.
BlackRock didn’t immediately respond to a request for comment from Bloomberg News.
Bitcoin was trading at US$96,421 at 8.26am on Friday in London, about 11% below its record high.
Chart: Bloomberg
