BlackRock Bitcoin ETF Sees Significant Outflow as Crypto Market Faces Volatility
BlackRock’s iShares Bitcoin Trust (IBIT) experienced its largest daily outflow since June on Monday, as U.S. spot Bitcoin exchange-traded funds (ETFs) began November with substantial withdrawals. The funds collectively saw net outflows of $398.6 million, with IBIT accounting for $405.3 million of that figure, according to data from Farside Investors.
This significant outflow from IBIT on Monday marks the largest since June 26, when investors pulled $444.5 million. Fidelity’s Wise Origin Bitcoin Fund (FBTC) provided a partial offset, attracting $6.7 million on the same day.
These withdrawals follow a trend of net outflows totaling $515 million from U.S. spot Bitcoin ETFs in October. Year-to-date, the funds have recorded approximately $38 million in net outflows.
Edwin Mata, CEO of tokenization company Brickken, commented that these outflows should not be interpreted as a rejection of digital assets. “Investors reduce exposure when uncertainty rises, particularly after an event that raises questions about the security of market infrastructure,” Mata stated in commentary released Monday.
The recent outflows occurred amidst broader cryptocurrency market volatility, which was exacerbated by a reported $6.3 billion hack of the Binance exchange.
Bitcoin’s price briefly dipped below $76,400 on Monday, reaching its lowest point since August, according to CoinGecko. At the time of publication, the cryptocurrency was trading around $76,600, representing a 3.7% decrease over the preceding seven days.
In related news, U.S. spot Ether (ETH) ETFs also recorded approximately $140 million in net outflows on Monday. This extends their losing streak to six consecutive trading days, following a record $1.61 billion in monthly outflows in October, as reported by SoSoValue.
The article also raises questions about whether Bitcoin’s traditional seasonal patterns, such as those observed in “Uptober,” are becoming less reliable in the current market environment.
