BlackRock's iShares Bitcoin ETF (#IBIT ) just saw the largest outflow ever on January 2, with $333 million as investors took profits. This is a notable event as the cryptocurrency market enters the new year, creating significant short-term volatility.

The largest cash outflow ever

According to data from Farside Investors, January 2 marked a record outflow from IBIT, reaching $333 million. This is the highest ever recorded for a Bitcoin ETF fund. In addition to IBIT, the Bitcoin ETF market in the U.S. also recorded a total outflow of $248 million, with Grayscale Bitcoin Trust (#GBTC ) in second place with $23 million withdrawn.

Alex Obchakevich, founder of Obchakevich Research, stated:

"The main reason is that investors are taking profits at the beginning of 2025. At the end of the year, investors and funds often reassess their portfolios, leading to the sale of some holdings."

The phenomenon of "Tax-Loss Harvesting" and early-year profits

Isaac Joshua, CEO of the Gems token platform, explained that this decline is also related to the "tax-loss harvesting" strategy.

"Many investors have liquidated both Bitcoin ETF funds and underlying assets to optimize their tax reporting, a common phenomenon in the financial markets at this time of year."

Positive outlook for BlackRock's Bitcoin ETF

Despite the large outflow, experts remain optimistic about the Bitcoin ETF from #BlackRock⁩ . Ryan Lee, head of analysis at Bitget Research, emphasized:

"BlackRock's Bitcoin ETF has the potential to drive widespread Bitcoin adoption by simplifying access for institutional investors, enhancing legitimacy, and supporting Bitcoin's popularity."

IBIT reached $50 billion in assets under management just 228 days after its launch, five times faster than any other ETF in history. Additionally, this ETF is expected to bridge traditional finance and cryptocurrency, contributing to stabilizing Bitcoin prices and reducing market volatility.

Bitcoin prices remain stable after the outflow

Although there is a large outflow, Bitcoin maintains a relatively stable price. According to CoinMarketCap, BTC is trading around $96,700, up slightly 0.11% in the past 24 hours and 0.35% over the past week. However, this price is still 10.7% lower than the historical high of nearly $108,300 recorded on December 17.

Conclusion

The record outflow event from BlackRock's Bitcoin ETF shows short-term volatility in the cryptocurrency market, but the long-term outlook remains positive due to the potential for legitimacy and expanded access for institutional investors. Will the capital flow return in Q1 2025? This will be a question worth monitoring.