BlackRock's Bitcoin Fund Drives Five-Day Run of ETF Redemptions

Redemptions from U.S. spot Bitcoin ETFs extended to a fifth consecutive day on Wednesday, pulling $299.8 million from the funds. BlackRock's iShares Bitcoin Trust absorbed nearly all that amount.

The withdrawals are heavily focused. The bulk comes from a single fund, removing one of Bitcoin's steadiest buyers from the market.

Why Are Bitcoin ETF Outflows Concentrated in BlackRock's IBIT?

About $1.44 billion has been drained from the ETFs over five trading days, according to Farside Investors.

Roughly three-quarters of that sum came from IBIT.

This week's outflows are even more skewed. Approximately $596 million has been taken out since Monday, with IBIT accounting for nearly all of it.

Wednesday's data illustrated the trend. Most funds had no movement, while IBIT alone shed $269.7 million.

The redemptions did not begin this week. On Nov. 2, IBIT recorded a $405.3 million outflow, its largest since June.

These are client redemptions, not BlackRock selling its own Bitcoin. Still, the shrinkage directly cuts the fees BlackRock earns.

The net outflows for the five days were: $430.2 million on Nov. 5, $411.9 million on Nov. 6, $201.0 million on Nov. 9, $95.0 million on Nov. 10, and $299.8 million on Nov. 11. IBIT made up the largest share each day, while some other funds recorded small inflows or outflows.

Which Fund Is Still Attracting Bitcoin ETF Money?

The outlier is Morgan Stanley's Bitcoin Trust.

That fund attracted fresh money on Monday, Tuesday and Wednesday, totaling about $51 million across the three days.

While small next to IBIT's redemptions, this indicates institutional demand has shifted rather than disappeared.

Older products keep leaking. GBTC posted another outflow on Wednesday, continuing its steady decline since conversion.

From a wider perspective, the impact is contained. The ETFs still hold roughly $55 billion in net inflows since their 2024 launch.

Against that backdrop, this week's selling is a dent, not a collapse. The path of IBIT redemptions is likely to shape ETF demand as the year ends.