BlackRock Bitcoin ETF $523M Outflow as BTC Falls Under 90K
BlackRock’s iShares Bitcoin Trust (IBIT) recorded its largest single-day outflow of $523 million on November 18, marking the fifth consecutive day of redemptions totalling $1.425 billion. The withdrawals coincided with Bitcoin’s slide below $90,000, down about 30% from its October peak of $126,000. The average purchase price for spot Bitcoin ETFs stands at $90,146, leaving many investors at breakeven or in loss.
Despite heavy redemptions, IBIT remains the leading Bitcoin ETF with $87.63 billion in assets under management as of November 19. Meanwhile, Grayscale Bitcoin Mini Trust and Franklin Templeton’s spot Bitcoin ETF attracted inflows of $139.6 million and $10.8 million respectively, indicating a rotation among products.
Analysts attribute the outflows to institutional risk aversion and profit-taking after earlier gains. Lower trading volumes and higher volatility at sub-$90,000 levels may drive further redemptions in the short term. However, nearly $25 billion of cumulative inflows from March through October suggest strong institutional demand could support a rebound if market sentiment improves.
Bearish
The significant outflows from BlackRock’s Bitcoin ETF and the slide of BTC below $90,000 indicate short-term selling pressure and reduced liquidity, contributing to a bearish outlook. Institutional redemptions and heightened volatility at key price levels can exacerbate downward momentum.
However, cumulative inflows of nearly $25 billion since March highlight underlying institutional demand. If market sentiment stabilises, this demand may limit further declines and eventually trigger a rebound, offering longer-term bullish potential despite current bearish conditions.