BlackRock's bitcoin ETF posts record-setting outflows worth $523 million

BlackRock's iShares Bitcoin Trust (IBIT) on Tuesday reported its largest daily net outflow since its January 2024 debut.

According to SoSoValue data, IBIT saw $523.15 million leave the ETF yesterday, surpassing the previous record of $463 million outflows set on Nov. 14. The ETF has now logged five straight days of net outflows, totaling $1.43 billion.

IBIT — the world's largest spot bitcoin ETF with $72.76 billion in net assets — has experienced a negative flow trend since late October. On a weekly basis, the fund has posted four straight weeks of net outflows, totaling $2.19 billion.

The outflows coincided with bitcoin's recent slide, which saw the crypto fall below $90,000 earlier this week from an all-time high of $126,080 reached in early October. Bitcoin is up 1.6% in the past 24 hours to change hands at $91,849, according to The Block's bitcoin price page.

Despite the recent outflows, Vincent Liu, CIO at Kronos Research, said institutional investors are rebalancing their investments rather than abandoning bitcoin entirely.

"Record-high IBIT outflows signal institutional recalibration, not capitulation," Liu said. "Big allocators are trimming risk, tightening exposure, and testing entry points until macro signals turn clear. When they do, risk-on appetite and allocation will quickly return."

Bitcoin and the broader crypto market have been suffering from reduced liquidity as a result of the extended U.S. government shutdown and uncertainty over the Federal Reserve's interest rate decision expected in December.

Analysts have previously said that liquidity may return to the market slowly as the U.S. government reopens, while the rate cut decision remains the most significant market event heading into year-end. The CME Group's FedWatch Tool currently gives a 48.9% chance that the Fed would cut rates by 25 basis points next month.

IBIT's $523 million outflows on Tuesday outweighed inflows into Grayscale's and Franklin Templeton's funds, resulting in a daily net outflow of $372.7 million for all spot BTC ETFs for the day.

Spot Ethereum ETFs showed a similar pattern. BlackRock's ETHA recorded $165 million in net outflows, outweighing the combined $91 million in inflows across funds from Grayscale, Bitwise, VanEck and Franklin Templeton.

Solana ETFs 

Meanwhile, Tuesday saw the debut of two new Solana ETFs, one from Fidelity (FSOL) and the other from Canary Capital (SOLC). FSOL saw $2.07 million in inflows on its first day, while SOLC reported zero flows.

Bitwise's BSOL, the first spot Solana ETF in the U.S., posted $23 million in inflows, while Grayscale's GSOL had $3.19 million.

Since BSOL launched on Oct. 28, the Solana ETFs as a whole have recorded 16 straight days of net inflows, accumulating $420.4 million in total net inflows.

"Solana ETF 16 day streak of inflows signal altcoins drawing allocators, delivering yield, and gaining traction," Liu said. "One of the freshest, shiniest ETFs around, it bundles staking rewards with exposure, making it easier to capture capital from a variety of investors."

Canary's spot XRP ETF experienced $8.32 million in net inflows yesterday, while its Litecoin ETF and Hedera ETF posted zero flows.