Yesterday, Tuesday, November 18, the iShares Bitcoin Trust (IBIT) exchange-traded fund (ETF) managed by BlackRock recorded its largest single-day capital outflow since its inception in January 2024.
On the day Withdrawals amounted to $523 million, surpassing the previous record of $463 million. Registered on November 14th.
This historic withdrawal occurred in the context of IBIT’s fifth consecutive day of net outflows, bringing total withdrawals for the period to $1.43 billion.
IBIT, the world’s largest spot Bitcoin ETF with $74 billion in net assets, has been showing a negative trend in capital flows since late October. The weekly analysis reported that net outflows from the product totaled $2.19 billion for the fourth consecutive week.
On the same day, the total amount of U.S. spot Bitcoin exchange traded funds was Consolidated net outflows were recorded at $372 million.also extended the industry’s consecutive negative record for five days. So far in November, there has been only three days of net inflow of these products into the market.
It is important to keep in mind that the operating mechanism of these ETFs involves buying and holding Bitcoin to support their actions, positioning them as key players in digital currency price movements.
If investors withdraw their funds, fund managers may be forced to sell some of their Bitcoin holdings to cover redemptions. According to a report by CriptoNoticias, this increase in supply, if not offset by equivalent demand, will exert direct downward pressure on asset values.
These capital outflows caused a correction in Bitcoin prices. It fell below $90,000 at the beginning of the week. After hitting an all-time high of $126,000 in early October. The digital asset is currently trading at $91,300. This scenario highlights the direct impact that cash ETF capital flows have on the market valuation of assets.
