BlackRock's Bitcoin ETF (IBIT) Sees Record $523.2 Million One-Day Outflow
Introduction
BlackRock’s spot Bitcoin ETF, IBIT, experienced its largest single-day outflow since the fund's January 2024 debut, with investors withdrawing $523.2 million in just one session. This event highlights ongoing volatility and shifting sentiment in Bitcoin-linked investment products even as Bitcoin’s price trades near $91,000.
Key Details
Record Outflow: On Tuesday, IBIT faced a net withdrawal of $523.2 million, the largest daily redemption in its history.
Investor Position: The average buyer of U.S. spot Bitcoin ETFs (since their 2024 launch) has a cost basis of $90,146—meaning at current Bitcoin prices around $91,000, most holders are just above break-even.
ETF Market Trends: While IBIT suffered major outflows, other funds like Franklin Templeton’s EZBC and Grayscale’s Mini Trust saw inflows of $10.8 million and $139.6 million, respectively. Still, U.S. Bitcoin ETFs had a net outflow of $372.8 million—marking a fifth straight day of overall redemptions in November.
Market Context
November Outflows: November has been marked by a strong trend of withdrawals from spot Bitcoin ETFs, with only three days recording net inflows all month. Bitcoin itself is down roughly 30% from its October all-time high.
ETF Assets Holding Up: Despite Bitcoin’s slide in November, the drawdown in U.S. ETF assets under management has been relatively mild, suggesting most of the selling pressure is happening outside the ETFs.
Investor Break-Even: With the average ETF entry point at $90,146, most new investors remain only modestly in profit as price volatility continues.
Additional Notes
IBIT pre-market trading showed a 1.5% dip, priced at $52 per share.
Total net inflows into U.S. Bitcoin ETFs since launch now stand at $58.2 billion.
Sources
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