IBIT #6 in 2025 ETF Inflows Despite Red Returns
BlackRock IBIT Tops ETF Inflows at #6 Despite Losses
BlackRock’s iShares Bitcoin Trust (IBIT), a spot Bitcoin exchange-traded fund, has achieved an impressive sixth position in year-to-date net inflows for 2025, even though it recorded negative returns over the same period. This standout performance among ETFs signals strong investor confidence in Bitcoin’s future, according to industry observers.
Bloomberg ETF analyst Eric Balchunas highlighted this achievement, noting that IBIT attracted approximately $25 billion in inflows thus far in the year. Remarkably, this figure surpasses many traditional equity and bond funds that posted substantial double-digit gains. Even the gold-backed ETF GLD, which has surged over 60% year-to-date, drew less capital than IBIT.
Balchunas characterized this inflow trend as a ‘really good sign’ for the fund’s long-term prospects. He emphasized that such substantial investments during a challenging year underscore the conviction of long-term holders, whom he playfully dubbed a ‘HODL clinic.’ He further speculated that in a bullish market year, the inflow potential could be exponentially higher.
Why ETF Inflows Aren’t Boosting Bitcoin Prices
Despite consistent institutional purchases via Bitcoin ETFs, some market observers have puzzled over the lack of corresponding upward pressure on Bitcoin’s price. Balchunas offered perspective, suggesting that the cryptocurrency market is maturing, resembling established asset classes where early investors realize profits and employ sophisticated income-generating tactics like selling call options, rather than pursuing relentless price appreciation.
He also pointed out that Bitcoin had delivered over 120% gains in the prior year, which may have set a high bar and moderated expectations for uninterrupted upward momentum. On the most recent Friday, U.S. spot Bitcoin ETFs experienced $158 million in net outflows overall, with only Fidelity’s FBTC recording positive inflows. In parallel, spot Ether ETFs saw $75.9 million in outflows, marking their seventh straight day of declines.
BlackRock Stands Firm Amid IBIT Outflows
The fund encountered significant redemption pressure in November, with IBIT registering about $2.34 billion in net outflows, including notable withdrawals on two mid-month days. Nevertheless, BlackRock leadership remains unperturbed. At the Blockchain Conference 2025 in São Paulo, business development director Cristiano Castro affirmed that the company’s Bitcoin ETFs rank among its top revenue generators.
Castro explained that ETFs inherently serve as tools for efficient capital allocation and cash-flow optimization. Consequently, phases of market compression accompanied by outflows are anticipated and represent normal operational dynamics within the product structure.
