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BlackRock Bitcoin ETF Sees First Day of Outflows, Analysts Remind Us it's "Norm"

BlackRock saw $36.9 million flow out of its Bitcoin ETF yesterday as the market saw its largest day in the red

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BlackRock iShares Bitcoin Trust (IBIT) has recorded its first day of outflows since its launch in January.

$36.9 million flowed out of the fund on 1 May, contributing to overall net outflows of $526.8 million. Fidelity Wise Origin Bitcoin Fund (FBTC) saw the largest outflows of $191.1 million while Grayscale Bitcoin Trust (GBTC), which has seen outflows since its launch, saw $167.4 million exit the fund.

The red day, which is the highest single-day outflow for Bitcoin ETFs, comes as Bitcoin continues to fall below $60,000. Over the past five days, Bitcoin has slipped almost 10%.

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However, analysts are reminding the market to stay calm. "$IBIT has its first outflow day of its existence. Ruff day to be a #bitcoin ETF," tweeted Bloomberg ETF analyst, James Seyffart, before adding, "these ETFs are operating smoothly across the board. Inflows and outflows are part of the norm in the life of an ETF."

ETF Store president Nate Geraci also highlighted how iShares Gold ETF and SPDR Gold ETFs have seen $1 billion and $3 billion in outflows respectively so far this year, but yet gold is up 16% YTD.

On 30 April, Hong Kong's Bitcoin and Ethereum ETFs debuted but to a rather disappointing start. Hitting just $12 million in trading volume, inflows paled in comparison to the US's $4.6 billion first day.

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