BlackRock’s IBIT Ranks 6th in ETF Flows Despite Negative Returns
BlackRock’s iShares Bitcoin Trust (IBIT) drew about $25 billion in net inflows this year, ranking sixth among ETFs by inflows despite posting negative returns year-to-date. In contrast, traditional equity and bond ETFs with strong gains, as well as gold ETFs with significant positive returns, attracted less new capital than IBIT. Analysts interpret this as a sign of growing long-term investor confidence in Bitcoin, noting substantial inflows even in a “bad year.” Institutional investors increasingly treat Bitcoin as a mature asset, preferring strategies like profit-taking and selling call options rather than chasing price rallies. Despite heavy inflows earlier in the year, IBIT recently experienced about $2.34 billion in outflows, with BlackRock maintaining that such fluctuations are normal for ETF products. BlackRock emphasizes that Bitcoin ETFs are now a major revenue source and promote efficient capital management. The wider spot Bitcoin ETF market, along with Ether ETFs, has faced recent net outflows, reflecting shifting investor sentiment and profit-taking after major price gains in the prior year.
