BlackRock Bitcoin ETF will face the first flow in 4 months

On Thursday, BlackRock's iShares Bitcoin Trust (IBIT) experienced its first outflow in nearly four months. Earlier, IBIT recorded an outflow on May 1.

The week got off to a strong start in Bitcoin exchange-traded funds (ETFs), with inflows of nearly $202.6 million on Monday. However, the tide turned quickly, with high currents following closely behind.

Blackrock recorded its second outdoor date

On Tuesday, investor withdrawals totaled around $127.1 million. Similarly, on Wednesday, funds continued to flow out at around $105.3 million.

Although down slightly, Thursday saw $71.8 million in outflows from the spot Bitcoin ETFs. Notably, BlackRock's IBIT recorded $13.5 million in spending, a rare occurrence since its launch in January.

The performance of the iShares Bitcoin Trust is largely resilient amid market fluctuations. Indeed, Thursday's move was only the second instance of outflows since the currency's launch.

Read more: How to trade Bitcoin ETF: A step-by-step approach

In contrast, the ARK 21Shares Bitcoin ETF ( ARKB ) bucked the trend, earning a net gain of $5.3 million on the same day. Meanwhile, other funds such as Fidelity Bitcoin Trust (FBTC) recorded the highest amount of spending at $31.1 million.

Against the background of these capital movements is a significant decline in the price of Bitcoin, which has fallen approximately 7.5% since Monday and is currently trading at $59,400. Martinton, a crypto analyst, emphasized that Bitcoin is testing the BlackRock Bitcoin ETF's average cost base for the fourth time.

“Every time a price level is tested, it weakens,” he said, highlighting the weak nature of this support level.

BlackRock Bitcoin EFF holds 340,855 BTC, making it the world's third largest holder behind the mysterious Satoshi Nakamoto and major crypto exchange Binance. This large holding underscores the ETF's value as a potential market support when the cost-average basis falls.

Moreover, historical performance data gives a grim outlook for the month ahead. According to Coinglass, Bitcoin consistently underperformed in September, returning an average of -4.78% since 2013, making it the cryptocurrency's worst month.

Read more: Who will have the most Bitcoins in 2024?

Additionally, the third quarter has been a challenging one for Bitcoin and the broader crypto market. As September looms, investors seem to be putting themselves on a cautious footing in anticipation of a traditional recession. This shift in strategy has been evident in recent outflows from various bitcoin ETFs, including BlackRock's iShares Bitcoin Trust.