Despite November outflows, BlackRock highlights strong long-term demand and near-record asset peaks
BlackRock’s flagship spot Bitcoin ETF, IBIT, closed November under pressure after significant withdrawals. Yet the asset manager remains unfazed. According to BlackRock executives, the recent “compression-driven outflows are perfectly normal”, especially for a product heavily influenced by retail flows.
IBIT Outflows Reflect Natural Market Adjustments
IBIT recorded an estimated “$2.34 billion in net outflows” during November, with the largest redemptions occurring mid-month. Withdrawals of “$523 million on Nov. 18” and “$463 million on Nov. 14” marked the most active selling days.
BlackRock business development director Cristiano Castro explained that ETFs are built to manage liquidity and capital rotation, making fluctuations part of their intended function. He emphasized that assets experiencing price compression often see accelerated ETF outflows — a pattern common in retail-dominated products.
Demand Earlier in the Cycle Shows Strength
Despite recent redemptions, BlackRock points to the ETF’s earlier momentum. Combined U.S. and Brazil listings under the IBIT brand came “very close to $100 billion in assets at their peak”, highlighting exceptional demand earlier in the year.
As bitcoin regained ground above $90,000, IBIT holders returned to profitability, now sitting on about $3.2 billion in cumulative gains. Earlier in October, gains across BlackRock’s Bitcoin and Ether ETFs reached nearly $40 billion before the broader market pullback.
ETF Outflows Reverse After Weeks of Pressure
After four consecutive weeks of heavy withdrawals, spot Bitcoin ETFs posted a weekly inflow of $70 million, partially offsetting the “$4.35 billion that exited the sector in November”.
The shift suggests renewed investor confidence amid bitcoin’s latest recovery.
BlackRock maintains that IBIT’s November outflows reflect standard ETF behavior during market compression — not a decline in long-term demand. With assets previously nearing $100 billion and investors returning to profit, the firm sees sustained interest ahead as bitcoin stabilizes.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.