BlackRock's IBIT Faces Record Outflow Run Amid Bitcoin's Struggle to Reclaim Bull Trend
BlackRock's Bitcoin Investment Trust (IBIT) experienced a record outflow of $113 million on Thursday, marking its sixth consecutive week of net redemptions. This six-week streak is the longest since IBIT's launch in early 2024. Over the past five weeks alone, the fund has seen more than $2.7 billion in redemptions, the heaviest outflow cycle since its inception.
At its peak during Bitcoin's rally to record highs, IBIT had grown to approximately $71 billion in assets under management. However, it has now faced five straight weeks of outflows through November 28, according to Bloomberg data. Although Bitcoin's price recovered to the low $92,000s, institutional capital flows remain negative. Industry observers interpret this as a sign of cooling capital allocation rather than a structural exit from the cryptocurrency.
Glassnode notes that the ongoing outflow cycle represents a break from the previous steady accumulation regime, indicating waning appetite for fresh capital allocation in Bitcoin. These outflows reflect broader shifts in crypto positioning since the liquidation shock in October and increasing macroeconomic uncertainty approaching year-end and bonus season.
IBIT's flow data is increasingly viewed as a proxy for broader U.S. institutional demand for Bitcoin, highlighting the fund's importance as a market indicator.
