BlackRock's spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), ranks sixth in net inflows, despite being the one fund in the highest cohort to post a negative return for the yr.
Data from Bloomberg ETF analyst Eric Balchunas shows that IBIT has seen around $25 billion in inflows for the reason that start of the yr, although its annual performance is within the red. In comparison, several traditional stock and bond ETFs posted double-digit gains ahead of IBIT within the rankings, while the gold-backed ETF GLD, which gained greater than 60% year-over-year, attracted less capital than IBIT.
Balchunas called the result a “really good sign” in the long run, arguing that flows reveal more about investor behavior than short-term price movements.
“If you may make $25 billion in a foul yr, imagine the flow potential in an excellent yr,” he wrote, referring to what he called the “HODL clinic” of older, long-term investors.
IBIT sees net inflows but negative returns. Source: Eric Balchunas
Why doesn't strong ETF buying drive Bitcoin higher?
Meanwhile, a crypto market participant questioned why sustained institutional purchases via ETFs haven’t resulted in stronger price performance.
In response, Balchunas suggested that the market could also be behaving more like a mature asset class, with early holders taking profits and using income strategies resembling selling call options slightly than chasing immediate upside moves. He also noted that Bitcoin has risen greater than 120% over the past yr, dampening expectations for continued gains.
On Friday, US spot Bitcoin ETFs (BTC) recorded net outflows of $158 million, with Fidelity's FBTC the one fund to see inflows. Meanwhile, spot Ether (ETH) ETFs recorded $75.9 million in outflows, extending their losing streak to seven straight days.
BlackRock defends IBIT after outflows
BlackRock's spot Bitcoin ETF got here under heavy pressure in November as its flagship fund IBIT saw net outflows of around $2.34 billion, including two large withdrawal days mid-month. Despite the decline, BlackRock executives downplayed concerns.
Cristiano Castro, BlackRock's business development director, said on the 2025 Blockchain Conference in São Paulo that the corporate's Bitcoin ETFs have turn into one in all its biggest revenue drivers. He argued that ETFs are designed to facilitate capital allocation and money flow management and normalize periods of compression and outflows.
