BlackRock Bitcoin ETF records $523 million biggest one-day outflow as BTC drops below $90,000

BlackRock Bitcoin ETF outflow today: Investors pulled about $523 million from BlackRock’s iShares Bitcoin Trust (IBIT) on Tuesday, marking the largest single-day withdrawal since the fund launched in January 2024, according to Farside Investors, reported Reuters.

BlackRock Bitcoin ETF Records Largest Single-Day Outflow Since Launch

The move comes as Bitcoin slipped below $90,000 this week, hitting its lowest point in seven months and signaling growing unease in the crypto market, as per the report.


IBIT, the largest spot Bitcoin ETF, has been a major driver of the crypto ETF boom since its debut. The recent outflows highlight the sharp pullback Bitcoin has experienced following its record high in October and underscore a wider retreat across risk assets, as per the Reuters report.

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Investors Shift From Bitcoin to Gold as Safe-Haven Asset

While Bitcoin struggles, gold has remained relatively steady, leading some analysts to suggest investors may be moving out of Bitcoin and into the traditional safe-haven asset, as per the report.

Kraken Economist Warns of Ongoing ‘Crypto Hangover’

Thomas Perfumo, Kraken’s Global Economist, said that, "The crypto market entered a hangover in August," adding that a lot of that demand was driven by borrowed money, as quoted by Reuters. He also said, "Momentum seemingly peaked during the summer. But the truth is this hangover trend started months ago," as quoted in the report.

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Long-Term Holders and Treasury Firms Take Profits

Profit-taking by long-term shareholders and caution among Bitcoin treasury firms has also contributed to the slowdown, as per Reuters. Brian Vieten, research analyst at Siebert Financial, said that, "Bitcoin treasury companies purchased nearly $50 billion of bitcoin over the past year. Recently, many of these firms have begun trading at a discount to net asset value, which weighs on near-term market expectations for net new bitcoin purchases by these firms," as quoted in report.

Market Concerns Rise Amid Stretched Asset Valuations

Broader concerns over stretched valuations in multiple asset classes are also weighing on sentiment. José Torres, senior economist at Interactive Brokers, said, "An ongoing lack of speculative spirits is weighing on bitcoin," as quoted by Reuters.

IBIT Assets Decline 19% Quarter-to-Date

IBIT, which holds more than $73 billion in assets, has fallen 19% quarter-to-date, reflecting the volatility and caution currently gripping the cryptocurrency market, reported Reuters.

FAQs

Why did investors pull money from BlackRock’s Bitcoin ETF?

Investors withdrew $523 million, reacting to Bitcoin’s dip below $90,000 and market volatility.

How low has Bitcoin fallen recently?

Bitcoin recently fell below $90,000, marking a seven-month low.