BlackRock's IBIT ETF experiences major losses in 5 weeks

Source: CritpoTendencia Original Title: BlackRock’s IBIT ETF Experiences Major Losses in 5 Weeks Original Link: During the last 5 weeks ending on November 28, BlackRock’s spot ETF (IBIT) has experienced a significant capital withdrawal. In fact, this is the worst negative trend for this product since it was listed on the U.S. stock exchange in January 2024. This week, the trend of negative flows continues despite the partial recovery in BTC price.

According to data from Farside Investors, a total of $2.7 billion has exited the world’s largest asset manager’s Bitcoin product.

In addition, during the most recent session (this Thursday), the product saw outflows of $113 million. This indicates that IBIT will likely close this week as the sixth consecutive week of predominant negative performance.

It is important to note that IBIT is the largest ETF product providing exposure to BTC. Currently, it manages over $70 billion in assets from BlackRock clients and has more than $62 billion in inflows. However, the market downturn in recent weeks has weakened this figure.

In this context, the constant outflow of funds from BlackRock’s IBIT ETF is closely related to the bearish Bitcoin market. As is well known, since October 10, liquidations have caused the cryptocurrency market capitalization to decline by more than $1 trillion dollars.

BlackRock’s ETF is one of the pillars of Bitcoin

To the annoyance of the most orthodox Bitcoin maximalists, BlackRock’s ETF is a key piece for the currency. It is a determinant of the level of institutional investments in the token. A massive portion of Wall Street’s large portfolios with crypto presence is precisely in holdings of this product.

This means that any event affecting the ETF could shake Bitcoin’s price. The relationship between the fund manager’s ETF and BTC’s price also works in reverse. Thus, price variations in Bitcoin stimulate greater outflows or inflows into the product.

However, this does not seem to be the case in recent days. The price of the largest cryptocurrency experienced a partial recovery after surpassing the $90,000 mark per unit. Despite this, BlackRock’s ETF shows no signs of optimism among Wall Street investments.

The results of this Friday’s session remain to be seen, and they will be of great importance. These could determine the trajectory of BTC’s price in the short term, that is, for the weekend. The rest of the spot Bitcoin products are also experiencing strong outflows that align with IBIT’s trend.