Bitcoin Crash Triggers Record Investor Exodus From a BlackRock Fund
Since reaching its all-time high of $126,300 in October, Bitcoin has undergone a correction of nearly 30%.
Quick overview
- BlackRock's IBIT fund experienced its largest single-day outflow of $523 million, marking its fifth consecutive day of net redemptions.
- The cryptocurrency market is facing significant challenges, with Bitcoin falling below a key price level and U.S.-listed Bitcoin ETFs suffering over $3 billion in outflows in November.
- Despite having over $72 billion in assets earlier this year, the sustained withdrawals indicate growing bearish sentiment among investors.
- Market liquidity has been drained due to ETF outflows and selling by long-term holders, contributing to pressure on Bitcoin prices.
The turmoil centers on BlackRock’s IBIT fund, managed by Larry Fink’s firm. It suffered its largest single-day outflow since launch, delivering another blow to the cryptocurrency market.
BlackRock saw $523 million in outflows from the iShares Bitcoin Trust (IBIT) on Tuesday, marking its fifth consecutive day of net redemptions. It’s a significant setback for the crypto market, which is facing multiple near-term challenges.
The sustained withdrawals of recent weeks point to growing bearish sentiment, despite the fund having amassed more than $72 billion in assets and nearly $26 billion in inflows earlier this year.
BlackRock—the world’s largest asset manager, led by Larry Fink—recorded $523 million in redemptions from IBIT on Tuesday, according to data compiled by Bloomberg.
On the same day, Bitcoin fell below a key price level, leaving investors across the 12 U.S.-listed Bitcoin ETFs sitting on collective losses. These funds have suffered over $3 billion in outflows so far in November, with nearly $2 billion pulled from IBIT alone.
Bitcoin Extends Its Historic Slide
Since reaching its all-time high of $126,300 in October, Bitcoin has undergone a correction of nearly 30%, and has yet to recover from the steep decline. By dropping below a crucial support level, BTC has pushed U.S. ETF investors into widespread losses.
The combination of ETF outflows and selling by long-term holders has drained market liquidity, pressuring Bitcoin prices in the short term and signaling weakening confidence.
A major crypto options platform also stressed the importance of U.S. monetary policy and the Federal Reserve’s decisions:
“With persistent doubts about the strength of the U.S. labor market and the odds of a December rate cut now little better than a coin toss, there are very few macroeconomic catalysts to fuel optimism as the year draws to a close.”
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