- BlackRock’s IBIT defied market outflows by gaining $65M during a volatile day.
- Grayscale’s GBTC saw $60M pulled as investors shifted to lower-cost ETFs.
- Institutional buyers appear to favor IBIT’s scale, custody, and transparency.
Spot Bitcoin ETFs recorded nearly $100 million in outflows on Thursday, but BlackRock’s iShares Bitcoin Trust (IBIT) stood out. The fund added $65 million in net inflows, defying market trends and increasing its dominance among institutional Bitcoin holders.
Institutions Pull Back, But IBIT Sees Renewed Accumulation
According to a report by CryptoELITES, most spot Bitcoin ETFs faced capital withdrawals after a shock tariff move triggered volatility across equities and crypto markets. IBIT, however, was the sole ETF to post inflows, adding $65 million in investor funds during the same period. Meanwhile, Grayscale’s GBTC recorded the largest outflow, losing $60 million in daily value.
Besides GBTC, other major funds like Fidelity’s FBTC, Ark Invest’s ARKB, Bitwise’s BITB, and VanEck’s HODL also experienced net redemptions. Combined, these outflows offset gains made earlier in the week, when total net inflows across all Bitcoin ETFs reached $218 million on Wednesday. The mid-week rally faded quickly as market sentiment shifted on economic policy changes.
IBIT’s unique inflow pattern signals increasing institutional preference for regulated and custodial-backed Bitcoin exposure. Its latest accumulation raises its total holdings to 575,492 BTC, worth nearly $48 billion. This continues to position BlackRock as a frontrunner in crypto asset management.
ETF Market Shifts as Investors Weigh Risks
The sharp reversal in flows comes just days after Grayscale launched two new Bitcoin-based income ETFs. Despite innovation efforts, GBTC continues to face investor outflows amid increased competition and lower fee alternatives. Fidelity and Franklin also saw reduced activity, suggesting investors are rotating capital or reassessing positions.
IBIT’s resilience during market turbulence reinforces its standing as a reliable institutional vehicle. With strong custody practices and transparent pricing mechanisms, the fund remains a key destination for capital during uncertain trading environments.
The latest inflows reflect a strategic response to price dips, suggesting institutions are selectively buying when retail sentiment weakens. The Bitcoin ETF market continues evolving, with volatility prompting both exits and fresh entries.
