BlackRock’s spot bitcoin ETF IBIT has seen record outflows this month amid a price decline and a sharp rise in the cost of bearish options used to protect against further market declines.
BlackRock’s Nasdaq-listed Bitcoin ETF IBIT has seen a net outflow of $1.26 billion so far this month, marking the largest monthly redemption since its launch in January 2024, according to data from SoSoValue. This outflow is part of a broader trend affecting the market, with 11 Bitcoin spot ETFs collectively experiencing withdrawals totaling $2.59 billion.
IBIT price has plummeted 16% to $52, the level last seen on April 22, TradingView data shows.
Falling prices cause traders to aggressively seek put options as a form of protection against further declines. This is reflected in the 250-day put options skew tracked by MarketChameleon, which measures the relative cost of puts compared to calls.
The 250-day call options bias has increased to a seven-month high of 3.1%, indicating that puts, used to hedge downside risks, are currently at their most expensive level relative to calls since April.
