BlackRock's IBIT ETF experiences major losses in 5 weeks

Source: CritpoTendencia Original Title: BlackRock’s IBIT ETF experiences major losses over 5 weeks Original Link: During the last 5 weeks ending November 28, BlackRock’s spot ETF (IBIT) has seen a significant capital outflow. In fact, this represents the worst negative trend for the product since its launch on the US stock exchange in January 2024. This week, the negative flow trend continues despite a partial recovery in BTC price.

According to data from Farside Investors, a total of $2.7 billion has exited the Bitcoin product from the world’s largest investment asset manager.

Additionally, during the most recent session (this Thursday), the product saw outflows of $113 million. This latest development means IBIT will likely close this week as the sixth consecutive week with predominantly negative performance.

It’s important to note that IBIT is the largest product in the exchange-traded fund sector offering BTC exposure. Currently, it manages over $70 billion in assets from BlackRock clients and has accumulated over $62 billion in inflows. However, the recent downturn in the market has weakened this figure.

In this sense, the constant outflow of funds from BlackRock’s IBIT ETF is closely linked to the Bitcoin bear market. As is well known, since October 10, liquidations have caused the total cryptocurrency market capitalization to drop by more than $1 trillion.

BlackRock’s ETF is one of Bitcoin’s pillars

Much to the annoyance of the most orthodox Bitcoin maximalists, BlackRock’s ETF is a key piece for the coin. It is a determining factor in the state of institutional investment in the token. A massive number of large Wall Street portfolios with crypto exposure are precisely holding shares of this product.

This means that any event involving the ETF shakes the price of Bitcoin. This relationship between the asset manager’s fund and the price of BTC also works in reverse. Thus, changes in the Bitcoin price drive greater outflows or inflows to the product.

However, this does not seem to be the case in recent sessions. The price of the largest cryptocurrency has seen a partial recovery, regaining the $90,000 per unit mark. Despite this, BlackRock’s ETF shows no signs of optimism among Wall Street capital.

The results from this Friday’s session remain to be seen, which will be of great importance. These could set the direction for BTC price in the immediate term, that is, for the weekend. The rest of the spot Bitcoin products are also experiencing strong outflows, accompanying the IBIT trend.