BlackRock's Bitcoin ETF Experiences Record Outflows Amid Broader Crypto Fund Declines
BlackRock's IBIT Bitcoin ETF experienced a record single-day outflow of $463.1 million on November 14. This event occurred during a week when global crypto exchange-traded products (ETPs) saw $2.0 billion in weekly outflows, marking the largest outflow since February, with U.S. funds accounting for approximately 97% of these outflows, or about $1.97 billion.
Overall, digital asset ETPs' assets under management declined from about $264 billion in early October to roughly $191 billion, a 27% decrease. Over the course of three weeks, outflows totaled $3.2 billion. Regionally, Germany attracted $13.2 million in inflows, while Switzerland and Hong Kong experienced outflows of $39.9 million and $12.3 million, respectively.
The current trend reflects macroeconomic uncertainty, expectations of hawkish monetary policy, and a broader risk-off behavior among investors. Market participants are de-risking portfolios and rotating towards multi-asset and short-Bitcoin strategies. ETF flows are closely tied to macroeconomic data and policy decisions and are expected to continue moving in tandem with market direction. However, analysts caution that ETF flows do not serve as precise market-timing indicators despite significant U.S. demand and sustained interest in top spot crypto ETPs, which have seen over $100 billion in flows nationally over approximately two years.
Future projections suggest that favorable developments, including improvements in tariffs, U.S. crypto regulation, treasury reserves, or potential rate cuts, could trigger price reversals instead of a sustained market downturn.
