BlackRock's IBIT ETF experiences major losses in 5 weeks

Source: CritpoTendencia Original Title: BlackRock’s IBIT ETF Experiences Heavy Losses Over 5 Weeks Original Link: During the past 5 weeks ending November 28, BlackRock’s spot ETF (IBIT) has seen a significant capital outflow. In fact, this is the worst negative trend for the product since it debuted on the US stock exchange in January 2024. This week, the negative outflow trend continues despite a partial recovery in BTC’s price.

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

In addition, during the most recent session (this Thursday) the product experienced outflows of $113 million. This means IBIT will likely close this week with its sixth consecutive week of predominantly negative performance.

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

In this sense, the ongoing outflows from BlackRock’s IBIT ETF are closely related to Bitcoin’s bear market. As is well known, since October 10, liquidations have caused the crypto market capitalization to drop by over $1 trillion.

BlackRock’s ETF Is One of Bitcoin’s Pillars

Much to the annoyance of Bitcoin’s most orthodox maximalists, BlackRock’s ETF is a key piece for the coin. It is a major indicator of the institutional investment landscape in the token. A massive portion of large Wall Street portfolios with crypto exposure is precisely in holdings of this product’s shares.

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

However, this doesn’t seem to be the case in recent days. The price of the largest cryptocurrency saw 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 of this Friday’s session remain to be seen, which will be of great importance. They could determine BTC’s price trend in the short term, that is, for the weekend. The rest of the Bitcoin spot products are also seeing strong outflows, following IBIT’s trend.