BlackRock, the largest asset management firm globally, has recently engaged in a significant Bitcoin-selling trend this week, sparking a series of sell-offs. These transactions were prompted by the outflows observed from its BTC ETF.
BlackRock Offloads Approximately $500 Million In Bitcoin
Data from Arkham indicates that BlackRock has liquidated about $500 million in Bitcoin this week, with the assets sent to Coinbase, suggesting a plan to sell these coins. These transactions followed the outflows from its iShares Bitcoin ETF, which has been a trend throughout the week.
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SoSo Value data reveals that BlackRock’s Bitcoin ETF recorded its first daily net outflow of $68.72 million on August 18. Subsequently, the fund experienced net outflows of $220 million, $127.49 million, and $198.81 million on August 20, 21, and 22, respectively. The iShares Bitcoin ETF has been responsible for most of these outflows, with BTC ETFs collectively on a six-day streak of consecutive net outflows.
These Bitcoin ETFs have seen total net outflows nearing $1.2 billion since August 15. Moreover, this week alone, over $1.1 billion has exited these funds, causing a bearish sentiment for Bitcoin prices. BlackRock’s outflows have triggered a subsequent wave of sell-offs, leading to a significant drop in the flagship cryptocurrency earlier this week.
This week, Bitcoin’s price fell as low as $112,000 as BlackRock and other BTC investors took profits on their stakes, in the wake of Bitcoin reaching a new all-time high (ATH) of $124,000 the previous week. However, BTC has since notably rebounded following Jerome Powell’s speech at Jackson Hole, which indicated a potential rate cut in September.
A Halt To The BTC ETF Outflow Trends
Interestingly, Powell’s address was sufficient to trigger new inflows into Bitcoin ETFs on August 22, while BlackRock was the only fund manager to report a net outflow that day. Further insights from SoSo Value illustrate that Cathie Wood’s Ark Invest experienced a daily inflow of $65.47 million, leading the issuers for that day.
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Additionally, Fidelity, Van Eck, Franklin Templeton, Bitwise, and Grayscale observed inflows of $50.88 million, $26.41 million, $13.51 million, $12.70 million, and $6.42 million, respectively. However, BlackRock faced an outflow of $198.81 million, resulting in a total daily net outflow of $23.15 million for the funds collectively. With the Bitcoin price recovering, these funds, including BlackRock’s IBIT, may start to see significant daily inflows again as early as next week.
As of now, Bitcoin is trading around $115,900, reflecting an increase of over 2% in the past 24 hours, according to data from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com
