BlackRock's 31-day entry period has concluded, marking the largest-ever exit from a business.
Cashing Out Big Time: BlackRock Closes Massive 31-Day Bitcoin Exit Streak
BlackRock, the world's top asset manager, has concluded a 31-day streak of Bitcoin spot ETF exits, making May 30 a record-breaking day with a $430.8 million exit from BlackRock's iShares Bitcoin Trust (IBIT) fund. This figure surpasses the previous high of $418.1 million set on February 26.
Nate Geraci, an ETF analyst, did not hold back his admiration for this extended spell. "The last 30+ days have been quite something," he shared on May 31, adding that BlackRock still holds about $70 billion in Bitcoin via ETFs—a mind-boggling figure.
In the U.S., no less than 11 spot Bitcoin ETFs reported consecutive negative net inflows in May, totaling $616.1 million in exits. Surprisingly, BlackRock was the exception to the red wave, experiencing inflows a day prior on May 29.
Master Ventures founder Kyle Chasse saw BlackRock's move as a smart investment strategy. "All other exporters were in the red, but BlackRock continued to buy... That's a big brain move." Chasse pointed out that these massive outflows weren't due to retail investor panicking but a deliberate move from institutional investors to manage supply.
As Bitcoin traded down 2.27% over the past 24 hours, around $103,700, Bitcoin enthusiasts started discussing the disconnect between fund inflows and the price drop. Nick Forster, founder of Derive, highlighted that while spot Bitcoin ETFs saw high inflows recently, the price didn't follow suit as much. During the week ending May 23, spot Bitcoin ETFs recorded a total of $2.75 billion in inflows. Yet, the price stayed relatively flat.
Dive Deeper:Driven by a combination of price correction after a strong rally and shifting investor sentiment, Bitcoin's dip below $100,000 triggered a wave of redemptions from U.S. spot Bitcoin ETFs, with BlackRock leading the charge. This trend follows typical market corrections in volatile assets where profit-taking and risk management cause temporary capital withdrawals, despite strong underlying demand.
Cryptocurrency's enduring presence in finance is evident as BlackRock, employing new investing strategies, continued to invest in Bitcoin technology despite large-scale redemptions. Conversely, the extended streak of Bitcoin spot ETF exits by BlackRock highlights the complicated relationship between cryptocurrency investments and market volatility.
