BlackRock Bitcoin ETF Records $523 Million Single-Day Outflow

TLDR

• BlackRock’s IBIT bitcoin ETF saw its largest single-day outflow of $523 million on Tuesday, breaking its previous record of $463 million set on November 14
• The fund has experienced five consecutive days of net outflows totaling $1.43 billion and four straight weeks of outflows totaling $2.19 billion
• Bitcoin has dropped nearly 30% from its October all-time high of $126,080, falling below $90,000 this week
• All U.S. spot bitcoin ETFs combined saw $372.7 million in net outflows on Tuesday, with ethereum ETFs showing similar patterns
• Analysts attribute the outflows to institutional rebalancing and macro uncertainty, including the U.S. government shutdown and upcoming Federal Reserve rate decision

BlackRock’s iShares Bitcoin Trust experienced unprecedented withdrawals on Tuesday. The world’s largest spot bitcoin ETF recorded $523.15 million in net outflows, marking its largest single-day exodus since launching in January 2024.

The outflow broke the fund’s previous record of $463 million set just five days earlier on November 14. IBIT has now posted five consecutive days of net outflows, with total withdrawals reaching $1.43 billion during this period.

The ETF’s struggles extend beyond the recent week. IBIT has recorded four straight weeks of net outflows, totaling $2.19 billion since late October.

The withdrawals coincided with bitcoin’s sharp decline from record highs. The cryptocurrency fell below $90,000 earlier this week after reaching an all-time high of $126,080 in early October.

As of Tuesday, bitcoin traded at $91,849, representing a decline of nearly 30% from its peak. The selloff pushed U.S. spot bitcoin ETF investors collectively into negative territory.

Market Liquidity Concerns

The broader crypto market has faced reduced liquidity due to the extended U.S. government shutdown. Uncertainty surrounding the Federal Reserve’s December interest rate decision has added to market pressures.

The CME Group’s FedWatch Tool shows a 48.9% probability of a 25 basis point rate cut next month. This near coin-flip scenario has left traders cautious about positioning into year-end.

Vincent Liu, CIO at Kronos Research, characterized the outflows as portfolio rebalancing rather than abandonment. He stated that large allocators are trimming risk and testing entry points until macro conditions clarify.

IBIT’s outflows dominated the broader ETF landscape on Tuesday. The fund’s withdrawals outweighed inflows into Grayscale and Franklin Templeton products, resulting in $372.7 million in net outflows across all spot bitcoin ETFs.

Ethereum ETFs Follow Similar Pattern

Spot ethereum ETFs displayed comparable trends. BlackRock’s ETHA recorded $165 million in net outflows on the same day.

These withdrawals exceeded the combined $91 million in inflows across funds from Grayscale, Bitwise, VanEck and Franklin Templeton. The pattern suggests broad-based institutional repositioning across crypto assets.

Options traders are positioning defensively against further downside. Sean Dawson, head of research at Derive.xyz, noted growing protection buying for bitcoin at $80,000 by late December.

Digital asset investment products recorded $2 billion in outflows last week alone. This marked the third consecutive week of withdrawals, bringing total outflows to $3.2 billion over the period.

Total assets under management in digital asset ETPs declined 27% from their early October peak. The figure dropped from $264 billion to $191 billion.

U.S.-based products accounted for $1.97 billion of last week’s outflows. Switzerland and Hong Kong recorded $39.9 million and $12.3 million in outflows respectively.

Dilin Wu, research strategist at Pepperstone, told Bloomberg that ETF outflows combined with long-term holder sales have tightened market liquidity. This combination has pushed short-term bitcoin prices lower while highlighting weakening market confidence.

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