BlackRock bleeds $523M in record outflow as Bitcoin crashes below $90K

Key Takeaways

How much did IBIT lose in a single day?

BlackRock’s IBIT recorded a historic $523 million outflow on 18 November 18.

What does this outflow signal?

Institutional clients dumped Bitcoin exposure through IBIT as BTC failed to reclaim $100K, triggering the largest net negative flow in the fund’s history.

BlackRock’s Bitcoin ETF just suffered its worst day ever. IBIT hemorrhaged $523 million on 18 November, shattering all previous outflow records as institutional investors abandoned Bitcoin positions below $90,000.

Arkham Intelligence data reveals the magnitude of the exodus. BlackRock buys or sells Bitcoin to settle outstanding IBIT shares on a T+1 basis.

This means today’s $523M BTC sale reflects actual client trading activity from yesterday.

The outflow represents the largest net negative flow in IBIT’s entire existence. No other day comes close.

IBIT outflow drowns entire ETF market

IBIT’s selling pressure overwhelmed the broader spot Bitcoin ETF landscape, according to Soso Value data. Total market outflows hit -$372.77M on 18 November, with BlackRock’s fund accounting for 140% of total negative flows.

Source: SoSoValue

Other major ETFs showed minimal activity. Fidelity’s FBTC, Grayscale’s GBTC, Ark’s ARKB, Bitwise’s BITB, and VanEck’s HODL all recorded zero or near-zero flows. 

Only Grayscale’s smaller BTC fund posted meaningful inflows at $139.63M, but this couldn’t offset IBIT’s historic dump.

The data showed that institutional money fled Bitcoin through the industry’s largest and most liquid ETF.

Bitcoin breaks $90K as selling accelerates

Bitcoin crashed 3.15% to $89,989.82 as the institutional selling wave hit. The breakdown confirmed technical weakness that’s been building since BTC failed to hold $100K in mid-November.

Source: TradingView

The MACD indicator is currently at -3,755.91, indicating deeply bearish momentum. Bitcoin has shed nearly $10,000 from recent highs near $100K, erasing weeks of gains in a matter of days.

IBIT still holds $72.76 billion in total net assets, representing 3.93% of Bitcoin’s market cap. The fund has maintained cumulative net inflows of $58.22 billion since its launch. 

However, yesterday’s record outflow signals a potential shift in institutional sentiment.

What changed on 18 November?

The timing suggests institutional clients lost confidence in Bitcoin’s ability to reclaim six figures. After multiple rejections at $100K, large allocators pulled the trigger on redemptions.

BlackRock must sell the underlying Bitcoin when clients redeem IBIT shares. The $523M figure represents actual BTC that hit the market, not just paper selling. 

This real supply pressure accelerated Bitcoin’s descent below key support levels.

Is this a temporary pause in the institutional Bitcoin adoption story, or the start of a deeper correction?