iShares Bitcoin Trust Records Largest Single-Day Outflow

iShares Bitcoin Trust (IBIT) managed by BlackRock experienced a record single-day net outflow of $523.15 million, marking increased withdrawals amidst Bitcoin’s price decline to under $90,000.

This significant outflow underscores institutional adjustments in crypto exposure, reflecting on market volatility, and potentially affecting Bitcoin’s liquidity and pricing dynamics further.

iShares Bitcoin Trust Faces $1.43 Billion Outflows in Days

On Tuesday, iShares Bitcoin Trust witnessed its largest single-day outflow of $523.15 million. This follows a downward trend since late October, with fund withdrawals reaching $1.43 billion over five consecutive days.

The largest spot Bitcoin ETF, managed by BlackRock, faces consistent outflows amid Bitcoin’s price falling below $90,000. Fund rebalancing by investors rather than complete divestment appears to be the prevailing strategy.

Vincent Liu, CIO of Kronos Research, addressed the situation by stating, “Institutional investors are rebalancing exposure, not abandoning BTC altogether.”

Bitcoin Price Dives Below $90,000 as Market Adjusts

Did you know? The recent outflow from iShares Bitcoin Trust is the most significant since its inception, highlighting institutional reallocation amid Bitcoin price volatility.

The current Bitcoin price is $89,893.02, with a market cap of $1.79 trillion and a dominance of 58.37%, according to CoinMarketCap. The cryptocurrency has seen a substantial decline over several timeframes, including a 7-day drop of 11.68%.

According to Coincu’s research team, such large ETF outflows can lead to increased short-term selling pressures on Bitcoin, with limited immediate impact on altcoins. Historical precedents indicate repetitive patterns in institutional investor behavior.