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    BlackRock’s IBIT Achieves 6th Place in ETF Inflows Despite Poor Performance

    Ethan CarterBy No Comments3 Mins Read
    BlackRock's IBIT Achieves 6th Place in ETF Inflows Despite Poor Performance

    BlackRock’s spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), has secured the sixth position in net inflows, even though it is the only fund in the leading group to show a negative return this year.

    According to data from Bloomberg ETF analyst Eric Balchunas, IBIT has attracted approximately $25 billion in inflows year-to-date, despite having an annual performance in the negative. In comparison, several traditional equity and bond ETFs that are ahead of IBIT in the ranking have seen double-digit gains, while gold-backed ETF GLD, which is up over 60% this year, garnered less inflow than IBIT.

    Balchunas characterized this outcome as a “really good sign” for the long term, suggesting that these flows more accurately reflect investor sentiment rather than short-term price movements.

    “If you can achieve $25 billion in a down year, think about the flow potential during a good year,” he commented, highlighting what he referred to as a “HODL clinic” composed of older, long-term investors.

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    IBIT sees net inflows despite negative returns. Source: Eric Balchunas

    Related: BlackRock IBIT Bitcoin ETF reaches $70B AUM milestone

    Why isn’t heavy ETF buying raising Bitcoin prices?

    Meanwhile, a participant in the crypto market challenged why ongoing institutional purchases through ETFs haven’t resulted in improved price performance.

    In reply, Balchunas indicated that the market might be acting more like a mature asset class, where early holders are taking profits and using strategies like selling call options, rather than pursuing immediate gains. He also acknowledged that Bitcoin had risen over 120% last year, which may have tempered expectations for ongoing increases.

    On Friday, US spot Bitcoin (BTC) ETFs experienced $158 million in net outflows, with Fidelity’s FBTC being the only fund to see inflows. In addition, spot Ether (ETH) ETFs recorded $75.9 million in outflows, marking their seventh consecutive day of losses.

    Related: BlackRock’s most successful ETF is on the verge of hitting $100B

    BlackRock addresses concerns over IBIT following outflows

    BlackRock’s spot Bitcoin ETF faced significant challenges in November, with its flagship IBIT fund facing about $2.34 billion in net outflows, including two major withdrawal days mid-month. Despite this downturn, BlackRock executives minimized concerns.