BlackRock’s Bitcoin ETF Suffers a Record $523 Million Outflow
BlackRock has experienced the largest single-day outflow in the history of its Bitcoin ETF. The iShares Bitcoin Trust, known as IBIT, saw five hundred twenty-three million dollars leave the fund on the eighteenth of November, marking the most significant withdrawal since the product launched in early 2024.Five Straight Days of Redemptions
The latest withdrawal surpasses the previous record of four hundred sixty-three million dollars set just days earlier. IBIT has now posted redemptions for five consecutive trading sessions, with investors removing a total of one billion four hundred thirty million dollars over this period. This prolonged outflow streak signals unusually strong caution among institutional participants who had previously driven steady inflows into the fund.Liquidity Stress Across the Crypto Market
The downturn in IBIT’s capital base reflects broader liquidity pressure in the digital asset market. Bitcoin has struggled to maintain upward momentum as overall trading volume weakens. Reduced liquidity amplifies price swings and can trigger additional selling as volatility increases.Impact of U.S. Government Shutdown and Fed Uncertainty
Market analysts point to the extended U.S. government shutdown as a major contributing factor. The shutdown has disrupted key financial operations, slowed regulatory processing, and strained investor confidence. At the same time, uncertainty surrounding the Federal Reserve’s upcoming interest-rate decision in December has accelerated risk aversion.With no clear guidance on future monetary policy, many institutions have moved into defensive positions, pulling capital out of risk-sensitive assets such as Bitcoin ETFs.
A Critical Moment for Institutional Crypto Exposure
Despite the steep outflows, some market observers argue that the pressure may be temporary. Bitcoin ETFs have previously seen periods of heavy redemptions during macroeconomic stress, often followed by sharp rebounds once policy direction becomes clearer. Others caution that prolonged liquidity stress could weaken institutional appetite through the rest of the year.Editorial Team — CoinBotLab