BlackRock Executive Discusses November's $2.3 Billion Outflows as Typical for IBIT
BlackRock's executive comments on the recent outflows from their Bitcoin ETF, asserting it is not unusual amidst changing market dynamics.
BlackRock’s spot Bitcoin ETF, known as IBIT, faced major withdrawals in November, totaling approximately $2.34 billion, yet the asset management firm deems this trend as expected.
In São Paulo, BlackRock’s Business Development Director, Cristiano Castro, stated that despite the outflows, demand for their Bitcoin ETFs has been robust, even allowing the fund to approach $100 billion at its peak earlier this year. He remarked that the rapid shift in allocations has been a pleasant surprise.
During November, there were significant withdrawals: around $523 million on November 18 and $463 million on November 14. Castro explained, “ETFs are very liquid and powerful instruments… what we’ve been seeing is perfectly normal.”
IBIT Performance Over the Past Month
IBIT performance over the past month. Source: SoSoValue
Related: Different types of ETFs explained - Cointelegraph
Castro highlighted that demand in the market reflects the strong interest among investors. The collective assets under IBIT neared $100 billion at one point, indicating a significant surge in interest.
After Bitcoin rose above $90,000 recently, holders of BlackRock’s ETF seen a collective gain, reversing prior losses.
Related: Why XRP ETF proposals are increasing
Following a streak of withdrawals, spot Bitcoin ETFs observed a reversal with $70 million in inflows last week, aiding recovery from the $4.35 billion outflow experienced in November.
Conversely, spot Ether ETFs also registered a rebound with $312.6 million flowing back after a significant $1.74 billion outflow over previous weeks.
