A major player in the cryptocurrency market has found itself on the odd side of history after witnessing its biggest exit in months.
Leading asset manager BlackRock ended the flow of income for its Bitcoin exchange-traded fund after recording $72.7 million worth of outflows on December 20.
Largest Exodus on Record
The data showed that the BlackRock Bitcoin ETF (IBIT) has seen the largest outflow since its launch in January this year.
According to Farside Investors, the global asset manager’s Bitcoin ETF posted an outflow of 72.7 million in December, the highest ever recorded for IBIT. They added that this came a day after IBIT registered zero turnover, causing investors to worry about the exchange-traded fund.
Source: Farside Investors
IBIT is not alone as fellow ETF issuer Fidelity Wise Origin Bitcoin Fund (FBTC) also experienced a record $208.5 million outflow on December 19, a day before IBIT experienced similar difficulties.
Analysts said that the next day, on December 20, FBTC recorded another outflow of about $71.9 million, making EFT suffer two days of outflows.
IBIT and FBTC are among the exchange traded funds in the United States. ETF issuers were ranked 1st and 2nd among the top 25 ETFs by assets after one month on the market.
Market observers said the US Spot Bicoin ETF’s market record high for two consecutive days was fueled by all-time high outflows from BlackRock and Fidelity.
The data showed that the ETF market lost $671.9 million on December 19 and another $277 million in outflows the next day, December 20.
Some Investors Are Concerned
The massive exits experienced by two of the largest ETF issuers in the US has caused concern among crypto investors about what the outlook for ETFs may be in the coming months.
However, analysts believe that the woes faced by BlackRock and Fidelity should not surprise traders as both international asset management companies have played a major role in revenue.
Some investors are concerned that recent developments in ETFs could be a turning point that could lead to a sharp decline in institutional investors’ appetite for Bitcoin exposure.
Market observers argued that the exit may not be delayed, adding that after Bitcoin dropped to $92,710 earlier, the alpha crypto has been bouncing back and rising again.
Bitcoin’s Volume Down
Trade analysts say that the volume of the Bitcoin market fell to $ 59.50 billion, a 52% decrease in its total volume, which contradicts the bullish run enjoyed by the crypto after Donald Trump won the US election last month.
During the crypto bull run, Bitcoin reached an all-time high of $108,000 per coin in November.
That same month, the US Bitcoin ETF also benefited from the crypto bull market after hitting a record high of $6.2 billion in net inflows.
As of press time, Bitcoin is trading at $95,359 per coin, down 1.3% in the last 24 hours, with a total market capitalization of $1.9 trillion.
Featured image from CNN, chart from TradingView
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