TLDR
- IBIT attracted $25 billion in 2025 ETF inflows despite posting negative returns.
- BlackRock’s Bitcoin ETF ranks sixth among top ETFs for investor inflows.
- Analysts cite IBIT inflows as a sign of long-term investor conviction.
- Bitcoin ETFs may behave like mature assets with profits and income strategies.
BlackRock’s spot Bitcoin ETF, iShares Bitcoin Trust (IBIT), ranked sixth in 2025 ETF inflows despite posting a negative annual return, drawing attention from both investors and analysts. The fund attracted roughly $25 billion in net inflows year-to-date, even as its performance remained in the red.
Experts say these strong inflows indicate long-term conviction from both institutional and retail investors rather than a reaction to short-term price movements. The inflows underline that Bitcoin continues to draw steady interest, even during periods of market volatility, showing resilience as a key asset in diversified portfolios. This trend suggests that many investors view Bitcoin ETFs as a stable long-term investment rather than a speculative tool.
IBIT Attracts Heavy Inflows Despite Negative Returns
Data from Bloomberg ETF analyst Eric Balchunas shows that IBIT pulled in about $25 billion this year. It is the only fund among the top-ranking ETFs that posted a negative return, while several traditional equity and bond funds with double-digit gains received less capital. Even gold-backed ETF GLD, which recorded a gain of more than 60% in 2025, attracted lower inflows compared to the Bitcoin ETF.
Balchunas described this trend as “a really good sign” for long-term investor behavior. He added, “If you can do $25 billion in a bad year, imagine the flow potential in a good year.” According to him, older, long-term investors are demonstrating a “HODL clinic” by holding Bitcoin through market fluctuations while continuing to invest.
🚨📈 #Bitcoin ETF Insight
BlackRock’s IBIT has attracted nearly $25B in inflows in 2025 — despite negative returns this year.
Massive capital still sees long-term upside, even in a red market. 🔥 pic.twitter.com/uEzL0GvVhZ
— PrimeX BTC (@PrimeXBitcoin) December 21, 2025
These results suggest that investors are increasingly treating Bitcoin ETFs as a core allocation in their portfolios rather than chasing short-term gains or volatility. The consistent inflows also indicate growing trust in regulated crypto products as part of broader investment strategies.
Market Behavior and Price Performance
Despite continued ETF inflows, Bitcoin’s price has not reflected equivalent gains. Some market participants questioned why sustained institutional buying through funds such as IBIT has not led to higher price performance.
Balchunas explained that Bitcoin may now behave more like a mature asset class, with early holders taking profits or implementing income strategies such as selling call options. He also cited Bitcoin’s 120% gain in the previous year, suggesting that investors are tempering expectations for continuous rapid growth.
As of Friday, U.S. spot Bitcoin ETFs saw $158 million in net outflows, with Fidelity’s FBTC being the only fund recording inflows. At the same time, spot Ether ETFs posted $75.9 million in outflows, marking a seven-day streak of negative net flows.
BlackRock Responds to ETF Pressure
IBIT experienced significant pressure in November 2025, with net outflows totaling $2.34 billion, including two particularly large withdrawal days mid-month. Despite this, BlackRock executives emphasized the ETF’s long-term potential and revenue importance.
Speaking at Blockchain Conference 2025 in São Paulo, BlackRock business development director Cristiano Castro stated that Bitcoin ETFs have become one of the firm’s largest revenue drivers. He added that ETFs are designed to facilitate capital allocation and cash-flow management, meaning periods of outflows and compression are expected and considered normal.
The IBIT fund’s strong inflows despite negative returns highlight investor confidence in Bitcoin over time and reflect sustained institutional interest. Analysts see this as evidence of long-term commitment from both institutional and retail investors, even during temporary market downturns. The continued attention to IBIT also demonstrates the evolving role of Bitcoin ETFs in portfolio management. The fund’s performance will be closely monitored in 2026 to gauge future institutional appetite for Bitcoin exposure through regulated ETFs and assess potential growth as the market stabilizes and matures.
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