• BlackRock's iShares Bitcoin Trust (IBIT), the largest bitcoin ETF, has seen record outflows totaling over $2.2 billion in November, including a single-day withdrawal of $523 million.
  • The outflows coincide with a sharp decline in bitcoin's price, which has fallen approximately 22% over the past month and erased its year-to-date gains.
  • In a contrasting trend, spot Solana ETFs have experienced 16 consecutive days of inflows, suggesting a shift in investor preference within the crypto sector.

Investors are pulling capital from BlackRock's flagship bitcoin ETF at an unprecedented rate, with over $2.2 billion exiting the iShares Bitcoin Trust (IBIT) so far in November. The outflows, which include a notable single-day withdrawal of $523 million, mark a dramatic reversal for the world's largest bitcoin ETF after months of steady inflows.

The selling pressure comes as bitcoin's price has slumped, falling roughly 22% over the past month and wiping out its year-to-date gains. By November 21, IBIT's net asset value had declined to $47.66, reflecting the broader crypto market downturn that has seen bitcoin drop below $87,000 from its all-time high of $126,000 in early October.

"We're seeing a clear risk-off sentiment in the bitcoin ETF space," said one portfolio manager who requested anonymity because they weren't authorized to speak publicly. "The velocity of these outflows is concerning, especially given IBIT's previous stability."

The outflows represent the worst streak since bitcoin ETFs launched in early 2024 after years of regulatory delays. Those initial launches had seen massive inflows as both institutional and retail investors sought regulated exposure to cryptocurrency.

While regulatory conditions for US bitcoin ETFs remain stable, the market is facing other headwinds. Recent technical disruptions, including a global Cloudflare outage, combined with significant crypto events like Mt. Gox transferring nearly $1 billion in bitcoin potentially for creditor repayments, have created additional supply and price pressure.

BlackRock representatives did not immediately respond to requests for comment on the ETF outflows. The world's largest asset manager oversees trillions of dollars in global assets through its iShares division, which specializes in exchange-traded funds.

In a contrasting development, spot Solana ETFs have recorded 16 consecutive days of inflows during the same period, totaling over $420 million. This suggests institutional money isn't entirely fleeing the crypto space but may be reallocating within it.

Some analysts warn that bitcoin could face continued pressure in the short term, particularly if large holders like Mt. Gox creditors begin liquidating their positions. The situation may force a broader recalibration of market expectations about crypto as an asset class, though historical patterns suggest ETF inflows could return if bitcoin prices stabilize.

Correction: An earlier version of this article misstated the current bitcoin price. It has fallen below $87,000, not $85,000.