U.Today – The start of 2025 brought an unexpected twist for BlackRock’s (NYSE:) iShares Trust (IBIT), as investors withdrew a whopping $332.6 million in a single day, equivalent to at 3,413 BTC. This is the ETF’s largest drawdown since its launch, higher than December’s anti-record $188.7 million in the last decade.
Eric Balchunas, a senior ETF analyst at Bloomberg, reacted to the anti-all-time high with a more “glass half full” approach, saying these pullbacks were predictable and long overdue.
He also said that Bitcoin ETFs likely won’t continue to grow as quickly, and while the amount of money left might have surprised some, it’s simply a sign that things are changing. It’s like taking a break from a journey where you’ve been making steady progress, from an expert’s perspective.
The timing of these releases corresponds to the changing price dynamics of Bitcoin. There is a pattern on the charts that looks like a “head and shoulders” shape, and if it breaks below the $92,000 neckline, the price could drop as low as $70,000 per BTC.
The details tell a different story again as IBIT ended 2024 on a high note, generating over $37 billion in inflows during the year. Its counterpart, ETHA, also received a lot of attention, raking in $3.53 billion.
These ETFs have helped solidify BlackRock’s position as a major player in institutional crypto investing, with holdings of Bitcoin worth approximately $53 billion and Ethereum worth nearly $3.7 billion. But even the best of these funds can be affected by market cycles.
This article was originally published on U.Today
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