BlackRock Addresses $2.3 Billion IBIT Withdrawals as Standard Market Activity

BlackRock's spot Bitcoin ETF faced pressure in November due to substantial outflows, yet the asset manager remains optimistic about its future. Speaking in São Paulo, Cristiano Castro, BlackRock's business development director, highlighted the rapid growth of Bitcoin ETFs as a major revenue source, describing it as a 'big surprise' this year.

Despite $2.34 billion in net outflows last month, Castro emphasized the liquidity and functionality of ETFs, stating, 'This is perfectly normal; assets experiencing compression often see such effects, especially those popular among retail investors.'

BlackRock's Bitcoin ETFs Approach $100 Billion in Assets

Castro noted that the demand for IBIT ETFs nearly reached $100 billion at its peak, highlighting the strong investor interest. As Bitcoin prices recovered, BlackRock's ETF investors saw a cumulative gain of approximately $3.2 billion.

Bitcoin, Ether ETFs Reverse Outflow Trends

Spot Bitcoin ETFs concluded a four-week withdrawal streak with a $70 million inflow, partially offsetting the $4.35 billion outflows in November. Similarly, Ether ETFs saw a $312.6 million weekly inflow after losing $1.74 billion in prior weeks.