BlackRock’s flagship Bitcoin ETF is experiencing its largest redemption cycle since its launch, with more than $2.7 billion withdrawn over the past five weeks as institutional flows continue to ease through the end of the year.
The iShares Bitcoin Trust (IBIT), which grew into a $71 billion vehicle during Bitcoin’s run to record highs, has now logged five straight weeks of outflows through November 28, according to Bloomberg data.
Another $113 million was withdrawn Thursday, putting the fund on track for a sixth week in the red, its longest streak since debuting in early 2024.
The withdrawals reflect the broader shift in crypto positioning since October’s liquidation shock, when leveraged wipes erased more than $1 trillion in digital asset market value and pushed Bitcoin into a confirmed bearish phase.
IBIT was the most important channel for institutional capital inflows at the start of the year, but this trend reversed as fund managers reduced their exposure ahead of bonus season and macroeconomic uncertainty increased.
Bitcoin returned to the low level of $92,000 this week, but flows remain negative. Analysts say this matters more for directionality than short-term price action. Glassnode noted that the outflow cycle marks a clear break from the stable accumulation regime that supported BTC’s rise in October, describing the current trend as a cooling in the allocation of new capital rather than a structural exit.
Bitcoin remains down about 27% from its all-time high set in early October, and IBIT flow data is increasingly seen as an indicator of broader U.S. demand.
