Key Insights:
- BlackRock Bitcoin ETF records $2.2 billion outflow, its largest since launch.
- Analyst Eric Balchunas remains bullish despite record withdrawals from the investment fund.
- The US Spot Bitcoin ETF has once again recorded a robust outflow on Monday.
The US Spot Bitcoin ETF has recorded massive outflow in recent weeks, with BlackRock’s IBIT as the top laggard. Notably, this month has brought the fund its sharpest outflow since launch, raising concerns among crypto market participants.
However, despite the gloomy momentum, renowned Bloomberg ETF analyst Eric Balchunas has refuted claims, allaying fears of traders. So, let’s explore why the expert has remained bullish despite the record withdrawals from the investment instrument.
Bitcoin ETF Record Outflows: Expert Shares Detail
BlackRock’s Bitcoin ETF posted withdrawals of around $2.2 billion in November, according to data shared by market commentator Walter Bloomberg.
He noted that investors pulled funds from IBIT “at the fastest pace so far,” while BTC price slipped nearly 22% over the past month and remained down roughly 7% on the year.
Responding to that, Eric Balchunas has reframed the data. He said the fund never experienced outflows before this point, so the “record” label lacks context.
He added that the withdrawals equal only a small fraction of the total assets of BlackRock Bitcoin ETF (IBIT). According to his assessment, about 97% of holders stayed put despite the downturn.
Balchunas suggested that this is the real headline, not the dramatic framing of the retreat. In addition, he noted that most IBIT investors did not drive the drop in Bitcoin’s price.
Instead, they held their positions through a decline that erased more than a third of the coin’s recent gains. During writing, IBIT stock was up more than 5%, suggesting renewed interest from traders.
Are Traders Resetting?
Balchunas also pointed to a sharp drop in short interest tied to BlackRock BTC ETF (IBIT). He said the number was never high, hovering around 2% of available shares.
But it has now fallen back to levels seen in April, before Bitcoin’s surge toward mid-year highs. He explained that traders usually increase short positions when prices rise.
On the other hand, they tend to unwind them when markets weaken. He cited analysis from S3 Partners showing this pattern across the wider ETF market. The drop in short interest, in his view, signals a cooling of speculative moves rather than deep structural worry.
Meanwhile, when asked whether BlackRock Bitcoin ETF (IBIT) could fall further, Balchunas avoided making any forecast. He said he does not believe in timing markets or predicting short-term direction.
But he highlighted Bitcoin’s historical behavior. He pointed out that the asset has always recovered from steep declines and later hit new all-time highs.
Bitcoin ETF Records Outflow Again, BlackRock (IBIT) Leads
The US Spot Bitcoin ETF has once again recorded an outflow of $151 million on November 24, after reversing course on November 21. Notably, Monday’s outflow was also led by BlackRock’s IBIT, with $149.1 million going out.
Meanwhile, IBIT has also recorded its worst weekly outflow since launch last week, which has spooked traders and hinted at a waning institutional interest. As a result, BTC price also slipped to as low as $80,000 before recovering to $87,500 at the time of writing.