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BlackRock Records a Historic Streak of Weekly Outflows From Its Bitcoin ETF Totalling $2.7 Billion
The iShares Bitcoin Trust (IBIT), an exchange-traded fund from the world’s largest asset manager BlackRock Inc., has posted its longest streak of weekly net outflows since its debut in January. Bloomberg reports this.
According to analysts, this indicates a significant weakening of institutional demand for Bitcoin (BTC), even despite the stabilization of its price.
It is reported that investors withdrew more than $2.7 billion from the fund over the five weeks ending November 28. Taking into account an additional $113 million withdrawn on December 4, IBIT is heading toward a sixth consecutive week of net capital outflows.
At the same time, this prolonged outflow streak aligns perfectly with the market crash that began after a major wave of liquidations in early October, when the crypto industry briefly lost more than $1 trillion in market capitalization.
Shift in Sentiment
Although the price of the leading cryptocurrency has recovered slightly this week, the continuing outflows from the ETF underscore a sharp shift in market sentiment, which had traditionally relied on momentum.
Analysts at Glassnode described this trend as a “clear reversal” compared with the previous regime of constant inflows that supported the price of digital gold earlier in the year.
Experts believe it reflects a “cooling of new capital inflows into the asset.”
At the time of publication, Bitcoin was trading at $90,655, marking a 28.25% decline from its peak in October, according to CoinMarketCap.
Raising IBIT Limits
On November 27, the Nasdaq International Securities Exchange submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to quadruple the daily trading limit for options tied to the BlackRock fund.
The current cap is 250,000 contracts, but the exchange wants to raise it to 1 million. Nasdaq explained that the proposed limits are fully in line with existing limits for other major iShares ETFs.
Examples cited included:
— iShares MSCI Emerging Markets
— iShares China Large-Cap ETF
— iShares MSCI EAFE ETF
This article does not contain investment advice or recommendations. Every investment and trading decision carries risk; readers should conduct their own research before making decisions.
See also: "Bitcoin price today: decline to $92,000 ahead of PCE data"
