BlackRock’s IBIT Faces Record Outflows as BTC ETFs See Continued Losses

On November 5, BlackRock’s Bitcoin exchange-traded fund (BITB) had its biggest outflow since launch. A staggering $44.2 million left the fund that day. The drop signals rising concerns within the Bitcoin ETF market. 

Even though 2024 has been a strong year, these losses highlight investor uncertainty. BlackRock’s BITB is now under scrutiny, and the larger Bitcoin ETF market seems to be in trouble.

A Deepening Trend of Losses

Since January, BlackRock’s BITB had only seen six days of outflows. May 1 marked the previous largest loss, at $36.9 million. However, November 5 shattered that record. Bitcoin ETFs across the board saw $116.8 million in outflows, extending the losing streak to three days.

Though the losses were smaller than the $541.1 million withdrawal on November 4, they still raise red flags. Fidelity’s FBTC led the charge with $68.2 million redeemed. ARK Invest’s ARKB followed closely with $12.5 million. 

Smaller outflows also came from Franklin Templeton’s EZBC ($6 million), VanEck’s HODL ($3.9 million), and Valkyrie’s BRRR ($1.3 million). Amid all this, Biwise’s BITB remained a bright spot, seeing $19.3 million in inflows.

Bitcoin Defies the Odds and Hits New Highs

Despite the ETF outflows, Bitcoin experienced a remarkable surge. The cryptocurrency hit a new record of $75,000, likely influenced by early election news surrounding Donald Trump’s momentum. 

Bitcoin pulled back slightly but still traded 8.7% higher, reaching $74,563. This surge follows Bitcoin’s previous all-time high of $73,797 in March. Despite the struggles of Bitcoin ETFs, Bitcoin continues to thrive. 

Meanwhile, Ethereum ETFs saw no outflows on November 5, though Ethereum followed Bitcoin’s upward momentum, climbing 6.7% to $2,600.

The global cryptocurrency market capitalization increased by 6.6%, reaching $2.58 trillion.