BlackRock’s US-listed Bitcoin fund, the IBIT, experienced a significant outflow of $292.5 million on August 5, marking its largest outflow since May. This decline occurred as Bitcoin, which had briefly dipped to $112,300 over the weekend, managed to recover slightly to $115,000 by late Monday trading. This outflow ended a streak of inflows that lasted 37 days, with $5.2 billion net inflows recorded in July alone. The overall trend showed that other US-listed spot Bitcoin ETFs similarly faced downtrends, with Fidelity’s Wise Origin Bitcoin Fund losing around $40 million and the Grayscale Bitcoin Trust shedding $10 million. Despite these short-term sell-offs, the broader outlook for institutional digital assets remains positive, with digital assets and hedge funds gaining significant market share as private equity faces challenges. Notably, the volatility of Bitcoin appears to have decreased since the launch of spot BTC ETFs in January 2024, suggesting a stabilization in the market.

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