BlackRock’s flagship iShares Bitcoin Trust (IBIT) saw record outflows of $523 million on Tuesday — its largest single-day withdrawal since launch, according to Farside Investors.
Bitcoin dropped below $90,000, its lowest level in seven months, extending a steep correction after hitting all-time highs in October. IBIT, the largest spot bitcoin ETF with $73B AUM, has been central to the crypto ETF boom, and the sharp outflows highlight how deep the risk-off sentiment has become.
Meanwhile, gold has remained resilient, prompting some analysts to say investors are rotating out of bitcoin and back into traditional safe havens.
Kraken economist Thomas Perfumo said the crypto market entered a “hangover” after a summer momentum peak driven partly by leveraged demand. Analysts also cite profit-taking by long-term holders and caution among bitcoin treasury firms — which purchased nearly $50B of bitcoin over the past year but now trade at discounts to NAV.
Interactive Brokers economist José Torres added:
“A lack of speculative spirits is weighing on bitcoin.”
IBIT has fallen 19% quarter-to-date, reflecting broader concerns about stretched valuations across risk assets.