Bitcoin ETF

Bitcoin

ETF COIN

BlackRock

Investors in BlackRock’s iShares Bitcoin Trust (IBIT) pulled a record $420 million from the fund in a single day, coinciding with BTC sharp drop to yearly lows. The spot BTC fund <a href="https://sosovalue.xyz/assets/etf/us-btc-spot" rel="noopener noreferrer nofollow">shed</a> 5,000 BTC on Feb. 26, marking its largest-ever daily outflow and surpassing the $332 million it lost at the start of the year.
<h2 id="span-style-font-weight-400-blackrock-investors-rush-for-the-exit-span">BlackRock Investors Rush for the Exit</h2>
The sell-off follows a <a href="https://thecoinrise.com/bitcoin-etfs-see-record-937m-daily-outflow-amid-market-turmoil/" rel="noopener noreferrer nofollow">brutal stretch for Bitcoin investment products</a>, with Feb. 24 recording over $1.1 billion in combined outflows. Over the past seven trading sessions, nearly $3 billion has exited Bitcoin ETFs, signaling widespread investor caution. The broader impact of BlackRock’s outflow was felt across the market, bringing the day’s total outflow to $756 million, as per CoinGlass.
Despite the grim numbers, ETF Store President Nate Geraci <a href="https://x.com/NateGeraci/status/1894826554318037401" rel="noopener noreferrer nofollow">downplayed</a> the concern, calling it a “shorter-term blip.” Meanwhile, other major Bitcoin ETFs weren’t spared either. Fidelity’s Wise Origin Bitcoin Fund (FBTC) witnessed another $145.7 million in redemptions, extending its own seven-day outflow streak. Other issuers, including Bitwise, Ark 21Shares, Invesco, Franklin, WisdomTree, and Grayscale, also reported outflows ranging between $10 million and $60 million.
<h2 id="span-style-font-weight-400-bitcoin-correction-or-market-panic-span">Bitcoin Correction or Market Panic?</h2>
The cryptocurrency market took a further hit, with total capitalization shrinking by 5.6% to $2.9 trillion. Bitcoin itself plunged to $82,455 on Feb. 26, marking a 25% correction from its all-time high in December. In total, $1 trillion has evaporated from the crypto space since the peak, leaving traders and investors rattled.
However, some analysts remain unfazed. Ki Young Ju, CEO of CryptoQuant, <a href="https://x.com/ki_young_ju/status/1894915237872312462" rel="noopener noreferrer nofollow">cautioned</a> against panic selling, reminding investors that similar corrections have occurred in past bull cycles. “A 30% correction in a Bitcoin rally is normal. It dropped 53% in 2021 and still hit new highs,” he said.
Meanwhile, industry veterans like BitMEX co-founder Arthur Hayes and 10x Research’s Markus Thielen believe that the mass exodus from <a href="https://thecoinrise.com/bitcoin-etf-inflows-driven-by-arbitrage-not-long-term-adoption-analyst/" rel="noopener noreferrer nofollow">Bitcoin ETFs is largely driven by hedge funds</a> rather than long-term BTC believers. These funds, which initially sought arbitrage yields, are now exiting as those opportunities dry up. <a href="https://thecoinrise.com/arthur-hayes-warns-bitcoin-could-plunge-to-70k-as-hedge-funds-unwind-etf-positions/" rel="noopener noreferrer nofollow">Hayes even projected that Bitcoin could dip further</a> to $70,000 if ETF outflows persist.
The post <a href="https://thecoinrise.com/blackrock-bitcoin-etf-sees-record-420m-outflow-as-btc-hits-yearly-lows/" rel="noopener noreferrer nofollow">BlackRock Bitcoin ETF Sees Record $420M Outflow as BTC Hits Yearly Lows</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

BlackRock Bitcoin ETF Sees Record $420M Outflow as BTC Hits Yearly Lows

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