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BlackRock's Bitcoin ETF Hits Turbulence With $2.7 Billion in Outflows

MarketDash Editorial Team
3 days ago
BlackRock's flagship Bitcoin ETF is experiencing its longest stretch of investor withdrawals since launching in early 2024, with over $2.7 billion exiting the fund across five consecutive weeks as the institutional enthusiasm that powered crypto's rally shows signs of fading.

BlackRock Inc. (BLK) is dealing with something it hasn't experienced much since launching its iShares Bitcoin Trust (IBIT): persistent outflows. Investors have pulled more than $2.7 billion from the fund over five consecutive weeks, marking the longest withdrawal streak since the ETF started trading in January 2024.

The Institutional Tide Turns

According to a Bloomberg report published Friday, the exodus represents a meaningful shift in sentiment. Bloomberg data shows that more than $2.7 billion exited the fund during the five weeks through Nov. 28, with another $113 million walking out the door on Thursday alone.

This matters because IBIT quickly became the go-to vehicle for institutions wanting Bitcoin (BTC) exposure without the operational headaches of custody and security. With more than $71 billion in assets under management, it's been a heavy hitter in the crypto space. The sustained withdrawals essentially erase the institutional inflow pattern that acted as Bitcoin's primary macro advantage for most of the year.

The timing tracks with Bitcoin's October correction, when a rapid liquidation wiped out more than $1 trillion in cryptocurrency market value. Earlier this week, blockchain analytics firm Glassnode observed that the pullback shows a "clear transition away from the strong inflow regime that supported price earlier in the year."

Technical Breakdown Signals Structural Shift

The chart tells a similar story. IBIT has slipped below a rising trendline that held throughout last year, flipping what was once support into resistance. The ETF is now trading beneath its major exponential moving averages, which is rarely a good sign for near-term momentum.

The recent bounce toward $52–$53 looks more like an oversold reaction than the start of a genuine reversal. The 20-day EMA sitting near $53.3 represents the first major barrier standing in the way of any recovery attempt. Without a close above this level, momentum stays tilted to the downside.

Below current levels, the $47–$48 region provided temporary support, but another rejection that loses that floor could expose IBIT to the broader support zone near $44–$45. The Relative Strength Index remains below 50, reinforcing the view that upside momentum is struggling to gain traction.

How BlackRock Stock Is Holding Up

While the Bitcoin ETF faces headwinds, BlackRock Inc. (BLK) shares have bounced back from steep October lows near $986. The recovery isn't without obstacles, though. The stock now faces meaningful Fibonacci resistance levels that could determine whether this bounce has legs.

The first major hurdle sits at $1,073–$1,075, which aligns with the 0.382 retracement of the prior decline. Beyond that, a thicker cluster of resistance lives between $1,100 and $1,127, an area that corresponds with a previous breakdown zone. Clearing this region would require sustained buying conviction and might signal a more durable trend shift rather than just a relief rally.

On the downside, support appears around $1,040, with psychological backing near the round $1,000 level. The good news is that momentum indicators have improved somewhat. The Supertrend indicator has flipped positive, and the Parabolic SAR is now printing below price, both of which suggest the selling pressure has at least paused for now.

What It All Means

The outflows from IBIT represent more than just numbers on a screen. They signal a broader shift in how institutional investors are thinking about crypto exposure right now. After riding the wave of enthusiasm that followed the ETF's launch, money managers appear to be reassessing their allocations following Bitcoin's October volatility.

Whether this is a temporary pause or the start of a longer-term trend remains to be seen. What's clear is that the one-way institutional buying that characterized much of 2024 has given way to something more uncertain. For BlackRock, which built IBIT into a $71 billion juggernaut in less than a year, the challenge now is whether the fund can stabilize and regain its momentum as crypto markets search for their next catalyst.

Back to News

BlackRock's Bitcoin ETF Hits Turbulence With $2.7 Billion in Outflows

MarketDash Editorial Team
3 days ago
BlackRock's flagship Bitcoin ETF is experiencing its longest stretch of investor withdrawals since launching in early 2024, with over $2.7 billion exiting the fund across five consecutive weeks as the institutional enthusiasm that powered crypto's rally shows signs of fading.

BlackRock Inc. (BLK) is dealing with something it hasn't experienced much since launching its iShares Bitcoin Trust (IBIT): persistent outflows. Investors have pulled more than $2.7 billion from the fund over five consecutive weeks, marking the longest withdrawal streak since the ETF started trading in January 2024.

The Institutional Tide Turns

According to a Bloomberg report published Friday, the exodus represents a meaningful shift in sentiment. Bloomberg data shows that more than $2.7 billion exited the fund during the five weeks through Nov. 28, with another $113 million walking out the door on Thursday alone.

This matters because IBIT quickly became the go-to vehicle for institutions wanting Bitcoin (BTC) exposure without the operational headaches of custody and security. With more than $71 billion in assets under management, it's been a heavy hitter in the crypto space. The sustained withdrawals essentially erase the institutional inflow pattern that acted as Bitcoin's primary macro advantage for most of the year.

The timing tracks with Bitcoin's October correction, when a rapid liquidation wiped out more than $1 trillion in cryptocurrency market value. Earlier this week, blockchain analytics firm Glassnode observed that the pullback shows a "clear transition away from the strong inflow regime that supported price earlier in the year."

Technical Breakdown Signals Structural Shift

The chart tells a similar story. IBIT has slipped below a rising trendline that held throughout last year, flipping what was once support into resistance. The ETF is now trading beneath its major exponential moving averages, which is rarely a good sign for near-term momentum.

The recent bounce toward $52–$53 looks more like an oversold reaction than the start of a genuine reversal. The 20-day EMA sitting near $53.3 represents the first major barrier standing in the way of any recovery attempt. Without a close above this level, momentum stays tilted to the downside.

Below current levels, the $47–$48 region provided temporary support, but another rejection that loses that floor could expose IBIT to the broader support zone near $44–$45. The Relative Strength Index remains below 50, reinforcing the view that upside momentum is struggling to gain traction.

How BlackRock Stock Is Holding Up

While the Bitcoin ETF faces headwinds, BlackRock Inc. (BLK) shares have bounced back from steep October lows near $986. The recovery isn't without obstacles, though. The stock now faces meaningful Fibonacci resistance levels that could determine whether this bounce has legs.

The first major hurdle sits at $1,073–$1,075, which aligns with the 0.382 retracement of the prior decline. Beyond that, a thicker cluster of resistance lives between $1,100 and $1,127, an area that corresponds with a previous breakdown zone. Clearing this region would require sustained buying conviction and might signal a more durable trend shift rather than just a relief rally.

On the downside, support appears around $1,040, with psychological backing near the round $1,000 level. The good news is that momentum indicators have improved somewhat. The Supertrend indicator has flipped positive, and the Parabolic SAR is now printing below price, both of which suggest the selling pressure has at least paused for now.

What It All Means

The outflows from IBIT represent more than just numbers on a screen. They signal a broader shift in how institutional investors are thinking about crypto exposure right now. After riding the wave of enthusiasm that followed the ETF's launch, money managers appear to be reassessing their allocations following Bitcoin's October volatility.

Whether this is a temporary pause or the start of a longer-term trend remains to be seen. What's clear is that the one-way institutional buying that characterized much of 2024 has given way to something more uncertain. For BlackRock, which built IBIT into a $71 billion juggernaut in less than a year, the challenge now is whether the fund can stabilize and regain its momentum as crypto markets search for their next catalyst.