Bitcoin sell-off pushes IBIT investor returns into the red — asset manager

Following a sustained period of market euphoria, the recent aggressive sell-off in Bitcoin has triggered significant reversals across institutional investment products. BlackRock’s iShares Bitcoin Trust (IBIT), which quickly became one of the largest and most successful spot Bitcoin ETFs in the U.S., has seen its investor returns fall into negative territory for many who bought in shortly after its launch.

Bitcoin peaked above $73,700 in mid-March, but subsequent price consolidation has driven the cryptocurrency down sharply. This steep correction means that investors who purchased IBIT shares in the initial weeks of trading, particularly those who entered the market during the first major price surges in January and February, are now registering net losses on their positions.

This turning point represents the first major stress test for the newly established U.S. spot Bitcoin ETFs. IBIT alone accumulated billions in assets under management (AUM) in record time, attracting both retail money and institutional interest looking for regulated exposure to the asset. Asset managers note that while the selling pressure is broad, the shift into the red for early IBIT investors might temper the extreme inflow enthusiasm seen earlier this year.

Market analysts attribute the sell-off primarily to profit-taking ahead of the Bitcoin halving event and broader macroeconomic uncertainties, particularly persistent inflation fears impacting Federal Reserve rate cut expectations. For institutional players invested in IBIT, this downturn serves as a crucial reminder of Bitcoin’s volatility, potentially signaling a transition from aggressive accumulation to a more cautious holding strategy.

Source: Bitcoin sell-off pushes IBIT investor returns into the red — asset manager