Bitcoin (BTC) ETF, 3-Week Inflow Streak Ends..."BlackRock IBIT 1-Year Return -45%"

▲ Bitcoin (BTC), ETF, BlackRock/AI Generated Image

The 3-week streak of net inflows into US spot cryptocurrency ETFs has ended, with $122.06 million flowing out of BlackRock's spot Bitcoin ETF IBIT.

According to cryptocurrency media outlet U.Today on August 3 (local time), IBIT, with net assets of $46.18 billion, recorded a net outflow of $122.06 million on the recent trading day. This amount is nearly half of the total net outflow of $265.37 million from all US spot cryptocurrency ETFs. The media reported that IBIT's 1-year return was calculated to be minus 45.62%, and investors who entered near the peak continued to sell to realize losses.

Funds also flowed out of other spot Bitcoin ETFs. Fidelity's FBTC recorded a net outflow of $64.95 million, and Ark 21Shares' ARKB recorded a net outflow of $17.54 million. Arkham detected evidence of 1,948.07 BTC moving from BlackRock-related wallets to Coinbase Prime, an institutional trading platform. The value of this amount is approximately $122.03 million.

Even after the large-scale fund outflow, BlackRock's Bitcoin holdings were estimated at 737,118.26 BTC, which accounts for 3.67% of the total Bitcoin supply. The media analyzed that ETF selling pressure has pushed Bitcoin into a bottom-forming phase that could last up to three months, and there is still a possibility of a short-term decline to $52,000, close to the realized price.

To absorb funds exiting volatile Bitcoin, BlackRock is also expanding its Ethereum (ETH)-based tokenized products. These products include BSTBL, an on-chain stake in BlackRock's Select Treasury-based liquidity fund, and BRSRV, a multi-chain based product. Both products invest in US Treasury bonds, cash, and repurchase agreements, and are operated under the GENIUS framework for stablecoin regulation.

BlackRock is pursuing a strategy to respond to redemptions in its spot Bitcoin ETF while redirecting investor demand towards less volatile tokenized dollar products. IBIT's fund flows and the realized price near $52,000 have been presented as key indicators to determine the next direction of the Bitcoin market.

[Article Key Summary]

-The 3-week consecutive net inflow into US cryptocurrency spot ETFs ended as $122.06 million flowed out of BlackRock's spot Bitcoin ETF IBIT.

-1,948.07 BTC moved from BlackRock-related wallets to Coinbase Prime, and IBIT's 1-year return was recorded at minus 45.62%.

-The media analyzed that if ETF selling pressure continues, Bitcoin could fall to around $52,000, its realized price.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*