BlackRock’s flagship Bitcoin ETF is experiencing its most intense redemption cycle since its launch, with more than $2.7 billion withdrawn in the past five weeks as institutional flows continue to decline toward the end of the year.
The iShares Bitcoin Trust (IBIT), which skyrocketed to a $71 billion vehicle during Bitcoin’s run to record levels, has now recorded five consecutive weeks of capital outflows through November 28, Bloomberg data shows.
Another $113 million came out on Thursday, putting the fund on track for a sixth week in the red, its longest streak since its debut in early 2024.
The withdrawals reflect the broadest shift in cryptocurrency positioning since October’s sell-off shock, when leveraged write-offs wiped out more than $1 trillion in digital asset market value and pushed Bitcoin into a confirmed bearish phase.
IBIT was the single largest conduit for institutional inflows earlier this year, but that bet has been reversed as fund managers reduced exposure ahead of bonus season and macroeconomic uncertainty increased.
Bitcoin has recovered to $92,000 this week, but flows remain negative. Analysts say that matters more for directionality than short-term price action. Glassnode noted that the exit cycle marks a clear break from the steady accumulation regime that underpinned BTC’s rise in October, and described the current trend as a cooling in the allocation of fresh capital rather than a structural exit.
Bitcoin remains 27% below its all-time high set in early October, and IBIT flow data is increasingly seen as an indicator of broader US demand.
