BlackRock’s IBIT Dominates Despite Record Outflows and Shifts

• BlackRock’s IBIT hit 77% market share but faced $332.6M in record single-day outflows.
• Bitcoin ETFs saw mixed flows as BTC hovers around $98K, with predictions of $180K in 2025.
• Russian brokerage Finam launches IBIT-based investment for qualified investors in rubles.

At the start of 2025, BlackRock’s iShares Bitcoin Trust (IBIT) was at its peak. The ETF had climbed to a record 77% market share in January, making it the clear leader among spot Bitcoin ETFs. Investors had poured billions into the fund throughout 2024, helping Bitcoin reach an all-time high of $108,000 in December.

Then, the tide changed. On January 3, there was a record withdrawal from IBIT when investors removed $332.6 million. For the third day in a row, IBIT experienced net withdrawals that reached $393 million throughout the week. The total inflows from Bitwise’s BITB and Fidelity’s FBTC were minimal to make up for its outflows.

Despite this setback, IBIT remains the dominant force in the Bitcoin ETF market. The latest data shows that BlackRock continues to command the largest share of daily trading volume, leaving behind competitors. Fidelity’s FBTC and Grayscale’s GBTC are its closest rivals, but neither has come close to challenging IBIT’s position.

Bitcoin’s price has hovered around $97,000, with analysts predicting it could surge past $180,000 later this year. Some believe nation-state adoption of Bitcoin could be a major catalyst. If governments accumulate Bitcoin as part of their reserves, demand for ETFs like IBIT could increase dramatically.

Related: Nasdaq Proposes In-Kind Bitcoin Redemptions for BlackRock Spot ETF

Meanwhile, BlackRock’s ETF is now reaching new markets. Russian brokerage firm Finam has announced plans to launch an investment product based on IBIT. The product will be available to qualified Russian investors starting February 17, offering structured notes tied to the Bitcoin ETF’s performance. The investment will be denominated in rubles, with returns calculated at the Russian Central Bank’s exchange rate.

If the ETF’s price rises by even one basis point before the note matures, investors could see returns of up to 20% in U.S. dollars. The minimum investment amount is set at 200,000 rubles, with a 1% commission fee. Finam has also hinted at future products linked to Ethereum spot ETFs, though Russia’s crypto regulations remain unclear.

BlackRock’s IBIT has had an incredible run, but the market is shifting. With outflows mounting and international interest growing, all eyes are on Bitcoin’s next move. Will IBIT maintain its dominance, or will other ETFs rise to challenge it? The answer may depend on how investors react to the evolving crypto landscape.

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