BlackRock's Bitcoin ETF Sees Record $3.79 Billion Outflows in November
BlackRock's iShares Bitcoin Trust has led unprecedented outflows from Bitcoin ETFs, marking a challenging month for the sector.
BlackRock’s iShares Bitcoin Trust (IBIT) ETF led record outflows, totaling $2.47 billion in November, which represents 63% of the total $3.79 billion withdrawn from US spot Bitcoin ETFs this month.
The recent turmoil in the Bitcoin ETF market was highlighted by fresh outflows of $903 million on Thursday, marking the largest single-day withdrawal since the launch of these products in January 2024.
During the month of November, if the outflows persist, it may go down as the worst month for Bitcoin ETF performance on record. The figures demonstrate that the withdrawal of $3.79 billion has already surpassed the previous monthly record of $3.56 billion set in February.
Bitcoin ETF flows, in USD million. Source: Farside Investors
Noteworthy Contributions to November Outflows
The IBIT ETF has been a significant contributor to this month’s record outflows, driving $1.02 billion in withdrawals just this week alone. Meanwhile, Fidelity’s Wise Origin Bitcoin Fund (FBTC) has also seen substantial redemptions this month with outflows totaling $1.09 billion.
Both funds combined account for 91% of the total withdrawals from US spot BTC ETFs in November.
Market Impact
Following these outflows, Bitcoin’s price dropped to $83,400 — a level not seen in seven months. Analysts suggest that this may be indicative of a more extended downturn, as industry insiders highlight ongoing risks associated with market sentiment.
“There’s a large cohort of dumb money who know nothing about crypto buying DATs and ETFs. This never ends well,” said QwQiao, co-founder of Alliance DAO.
Translation: There is a significant number of inexperienced investors currently entering the market, which could lead to adverse outcomes.
Chris Burniske from Placeholder remarked: “The era of DAT selling has only just begun,” indicating potential further declines ahead.
Source: QwQiao
Research from DefiLlama indicates that investments into digital asset treasuries fell significantly to $505 million in November, suggesting a challenging outlook for the crypto market.
