BlackRock’s IBIT Sees $2.34B Withdrawals In November

The BlackRock US-listed spot Bitcoin exchange-traded fund (ETF) known as IBIT experienced a challenging November, recording a massive $2.34 billion withdrawals. 

Despite this temporary setback, the asset manager maintains confidence in the long-term potential of its crypto investment products. This comes as the Bitcoin ETF has become one of the firm’s biggest revenue drivers. 

BlackRock’s IBIT Faces Sharp Outflows After October Surge

BlackRock’s IBIT ETF recorded net outflows estimated at $2.34 billion during November. This massive withdrawal occurred mid-month, with about $523 million leaving on November 18 and another $463 million on November 14. 

Experts noted that these massive figures reflect the volatility often seen in retail-driven investment products. Meanwhile, this heavy outflow comes after IBIT pulled in over $1 billion across three straight trading days in October. This significant inflow pushed the investment funds into the top 10 most-traded ETFs in the U.S. 

Reported in a local news outlet, Cristiano Castro, BlackRock’s top executive, explained that such movements are common in liquid instruments like ETFs. 

He emphasized that these funds are designed to allow investors to allocate capital and manage cash flow efficiently. According to Castro, the recent compression in assets is a normal reaction in any rapidly growing investment vehicle.

Bitcoin and Ethereum ETFs Show Signs of Recovery

Despite the withdrawals, investor sentiment has shown signs of recovery. BlackRock’s spot Bitcoin ETF holders returned to profit as Bitcoin climbed back above $90,000. Spot Bitcoin ETFs ended four weeks of heavy outflows with a $70 million weekly inflow. 

This partially offset the $4.35 billion that exited the sector in November. Investors in IBIT now hold a cumulative gain of about $3.2 billion, reversing losses incurred during Bitcoin’s recent decline.

Similarly, BlackRock’s Ethereum ETF also rebounded. Spot Ethereum ETFs recorded $312.6 million in weekly inflows, recovering part of the $1.74 billion lost over the previous three weeks. 

Strong Growth Keeps BlackRock Confident in Its Crypto ETFs

Castro highlighted the unexpected growth of BlackRock’s crypto ETFs, especially IBIT. The crypto fund became the asset manager’s most profitable ETF, generating nearly $245 million in fees over the past year.

BlackRock’s business director noted that the total value of assets under IBIT in the US and Brazil almost reached $100 billion. This shows that investors were very interested in the fund earlier. 

Furthermore, Castro pointed out that investors’ willingness to return to these ETFs after market pullbacks reflects the resilience and appeal of crypto-based investment products. BlackRock remains confident that these funds will continue to attract capital over the long term, reinforcing the company’s strategic focus on digital assets.