BlackRock’s spot Bitcoin exchange-traded fund (ETF) experienced significant withdrawals in November, but the asset manager maintains a positive long-term outlook for the product.
Cristiano Castro, BlackRock's business development director, stated in São Paulo that the company's Bitcoin ETFs have become substantial revenue generators, describing their rapid growth this year as a "big surprise."
These comments come after a challenging month for BlackRock’s US-listed IBIT, which saw an estimated $2.34 billion in net outflows during November. Notable withdrawals included approximately $523 million on November 18 and about $463 million on November 14.
Castro emphasized the nature of ETFs, stating, "ETFs are very liquid and powerful instruments. They exist to let people allocate capital and manage cash flow. What we’ve been seeing is perfectly normal; any asset that starts to experience compression usually has this effect, especially in an instrument that is heavily controlled by retail investors."
BlackRock’s Bitcoin ETFs Reached Nearly $100 Billion in Peak Assets
Castro highlighted the strong demand earlier in the cycle, noting that combined US and Brazil listings under the IBIT nameplate approached "$100 billion" in assets at their peak.
According to Cointelegraph, holders of BlackRock’s spot Bitcoin ETF have returned to profitability following Bitcoin's resurgence above $90,000 on Thursday.
Investors in BlackRock’s IBIT now hold a cumulative gain of approximately $3.2 billion, recovering from losses incurred during Bitcoin's recent price decline. IBIT and BlackRock’s Ether ETF holders had seen gains of nearly $40 billion at their peak in early October. These profits had significantly decreased to just $630 million last week, indicating that most positions were near break-even before the latest market rebound.
Bitcoin and Ether ETFs End Outflow Streak
Spot Bitcoin ETFs concluded four consecutive weeks of substantial withdrawals with a $70 million inflow for the week. This inflow partially offset the $4.35 billion that exited the sector throughout November.
Spot ETH ETFs also experienced a rebound, recording $312.6 million in weekly inflows after seeing $1.74 billion in outflows over the preceding three weeks.