BlackRock's Bitcoin ETF Sees Record Outflows Totaling $2.7 Billion

Deep News12-05 20:00

BlackRock Inc.'s iShares Bitcoin Trust (IBIT) has experienced its longest weekly streak of outflows since its launch in January 2024, signaling subdued institutional interest in the world's largest cryptocurrency despite stabilizing Bitcoin prices.

Data compiled shows that over a five-week period ending November 28, investors withdrew more than $2.7 billion from this exchange-traded fund (ETF). The fund faced an additional $113 million in redemptions on November 27, marking its sixth consecutive week of net outflows.

With assets under management exceeding $71 billion, IBIT has been a primary vehicle for traditional investors to gain exposure to Bitcoin. The sustained outflows coincide with Bitcoin's bearish trend following a major liquidation event in early October, which erased over $1 trillion from the cryptocurrency market's valuation.

BlackRock has not responded to requests for comment.

While Bitcoin has partially recovered this week, the persistent ETF outflows highlight shifting investor sentiment in a market historically driven by momentum.

Blockchain analytics firm Glassnode noted in a recent report: "This trend marks a clear reversal of the sustained inflows that supported Bitcoin's price earlier this year and reflects cooling inflows into the asset."

Bitcoin currently trades around $92,000, down 27% from its October peak.

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