BlackRock’s Bitcoin ETF Sees Longest Outflow Streak Since Launch
BlackRock’s iShares Bitcoin Trust has logged its longest stretch of weekly withdrawals since the fund launched in January 2024, marking a sharp turn in institutional sentiment toward Bitcoin even as prices steady. The fund has seen over $2.7 billion withdrawn in five weeks, according to data from SoSoValue, with redemptions continuing on Thursday with an additional $113 million.
This reversal follows October’s sharp crypto-market liquidation, which erased more than $1 trillion in value and halted the fund’s months of steady inflows. Analysts warn that the trend signals weakening institutional appetite for Bitcoin, despite the cryptocurrency’s recent price stability. Bitcoin has clawed back some losses this week, but analysts say ETF flows paint a clearer picture of institutional caution.
IBIT Faces Reversal as Crypto Wipeout Ends Months of Steady Inflows
IBIT, which manages more than $71 billion in assets, has been the flagship vehicle for traditional investors seeking regulated exposure to Bitcoin. However, flows have reversed direction since early October, when a violent liquidation across crypto markets triggered a sell-off that erased more than $1 trillion in digital-asset value. The shift stands in contrast to the steady inflows that helped propel Bitcoin higher earlier in the year.
Last week, speaking in São Paulo, BlackRock business development director Cristiano Castro said the company’s Bitcoin ETFs had become one of its strongest revenue engines, calling their rapid ascent “a big surprise” as investor allocations surged throughout the year. Castro also downplayed outflow concerns, noting that “ETFs are very liquid and powerful instruments.”
Analyst Insights and Market Trends
In a recent report, Glassnode wrote that the outflow streak “marks a clear reversal from the persistent inflow regime that supported price earlier in the year, and reflects a cooling of new capital allocation into the asset.” The firm noted that investor positioning has become more defensive as volatility and funding pressure remain elevated. Despite the turbulence, Bitcoin traded around $92,000 in London on Friday morning, still down 27% from its October peak.
As reported, Grayscale’s first US spot exchange-traded fund tied to Chainlink opened with solid demand, adding another data point to the debate over whether appetite for altcoins can survive a cooling crypto market. The product ended its debut session with $41 million in net inflows and about $13 million in trading volume. The figures placed Chainlink among the stronger ETF launches this year and suggested that, at least for some investors, regulated vehicles remain the preferred route into higher-risk digital assets.
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