BlackRock's iShares Bitcoin Trust ETF (IBIT) logged record-breaking outflows on Tuesday, hemorrhaging $418 million in a single day, according to data provided by SoSoValue.
This sum dwarfs the outflows that were recorded by competing products.
For comparison, the Fidelity Wise Origin Bitcoin Fund (FBTC) recorded $145 million worth of outflows while the ARK 21Shares Bitcoin ETF (ARKB) and the Grayscale Bitcoin Mini Trust ETF (BTC) lost $60.46 million and $55.97 million, respectively.
The overall outflows reached $754.53 million on Wednesday. On Tuesday, they bled more than $1 billion for the first time.
As reported by U.Today, crypto naysayer Peter Schiff recently predicted that Bitcoin ETFs could eventually face mass redemptions.
Tomiwabold OlajideHowever, some leading ETF analysts have already downplayed the severity of such gargantuan ETF outflows since it is now clear yet whether they represent a broader trend.
Extremely negative sentiment
In the meantime, the Fear and Greed Index, a popular tracker of market sentiment, has now plunged to just 10, which is the lowest level since 2022.
On Wednesday, the leading cryptocurrency collapsed to $82,455. However, it has since recovered to $89,191.
Notably, the popular sentiment indicator is now lower compared to when the FTX exchange famously collapsed in 2022. The market has gone from greed to extreme fear in less than just two weeks.
The massive plunge comes amid economic uncertainty as well as the devastating Bybit hack that sent shockwaves across the cryptocurrency industry last week.
Vladislav Sopov
Dan Burgin