BlackRock’s leading Bitcoin ETF is currently experiencing its largest redemption wave since its inception, with over $2.7 billion withdrawn in the last five weeks as institutional investments continue to adjust heading into year-end.
The iShares Bitcoin Trust (IBIT), which surged to a $71 billion asset during Bitcoin’s peak, has recorded five consecutive weeks of outflows up to Nov. 28, according to Bloomberg data.
An additional $113 million was withdrawn on Thursday, putting the fund on track for a sixth consecutive week of losses, marking its longest decline since launching in early 2024.
The outflows reflect a broader change in crypto positions since the liquidation shock in October, which wiped out over a trillion dollars in digital asset market value and confirmed Bitcoin’s bear market phase.
Earlier this year, IBIT was the primary channel for institutional investments, but that trend has reversed as fund managers reduce their exposures ahead of bonus season amid increasing macroeconomic uncertainties.
Despite Bitcoin recovering to the low $92,000 range this week, the outflows remain negative. Analysts suggest that this trend affects long-term direction rather than immediate price movements. Glassnode highlights that this outflow cycle represents a significant departure from the accumulation phase that supported Bitcoin’s rise until October, indicating a slowdown in new capital investments rather than a mass exit.
Bitcoin is still down about 27% from its record high achieved in early October, and the flow data from IBIT is increasingly regarded as a barometer for overall U.S. demand.
