Author: bitcoinist
Compiled by: Blockchain Knight
As a major participant in the Crypto asset market, BlackRock has undergone some changes after experiencing the largest capital outflow in several months.
BlackRock recorded an outflow of $72.7 million on December 20, ending the consecutive inflows of its BTC ETF.
Data shows that BlackRock's BTC ETF (IBIT) saw its largest outflow since its launch in January this year.
Farside Investors said that the BTC ETF of the global asset management company saw an outflow of $72.7 million in December, setting a new record high for IBIT.
Farside Investors added: "This happened on the second day of IBIT registering zero flows, making investors anxious about the ETF."
Just a day before IBIT faced the same predicament, Fidelity's BTC fund (FBTC), another ETF issuer, also set a record high outflow of $208.5 million on December 19.
Analysts said that on December 20, FBTC recorded another outflow of about $71.9 million, resulting in two consecutive days of capital outflows for the ETF.
IBIT and FBTC are among the best-performing ETFs in the US.
A month after listing, these two ETF issuers ranked 1st and 2nd respectively among the top 25 ETFs by assets.
Market observers said the record-high capital outflows from the US spot BTC ETF market for two consecutive days, with the outflows from BlackRock and Fidelity hitting new highs, have exacerbated the situation.
Data shows that the ETF market lost $671.9 million on December 19, and another $277 million the next day.
The massive capital outflows experienced by the two largest ETF issuers in the US have raised concerns among Crypto asset investors about the prospects of ETFs in the coming months.
However, analysts believe that the predicament faced by BlackRock and Fidelity should not come as a surprise to traders, as these two global asset management companies were largely responsible for the massive inflows.
Some investors are concerned that the recent developments in ETFs may become a turning point, leading to a significant decline in institutional investors' interest in BTC exposure.
Market observers believe the capital outflow may not be sustained, and added that the alpha Crypto asset, which earlier plunged to $92,710, has rebounded and is on the rise again.
Trading analysts said that BTC's trading volume has declined to $59.5 billion, a 52% drop in total trading volume, which is contrary to the bullish trend of Crypto assets after former President Trump's victory in the US election.
During the Crypto asset bull market, BTC reached a historic high of $108,000 per coin in November.
In the same month, the US spot BTC ETF also benefited from the Crypto asset bull market, with a record net inflow of $6.2 billion.
