BlackRock's IBIT average investor return turns negative amid BTC drop

Following a sharp decline in Bitcoin's price last Saturday, the average return for investors in BlackRock's spot Bitcoin ETF (IBIT) has reportedly turned negative. According to Cointelegraph, Bob Elliott, a former executive at the major global hedge fund Bridgewater, explained that Bitcoin's recent drop to the mid-$70,000s fell below the average entry price for IBIT investors. He noted that this was due to capital inflows at Bitcoin's peak diluting the average return, meaning that while some early investors remain in profit, the overall cumulative return has shifted to a loss. The media outlet added that the dollar-weighted return for IBIT peaked at around $35 billion last October, when Bitcoin reached an all-time high, and has been declining since, increasing pressure on investor returns.