Key Takeaways IBIT shed $1.21 billion across five sessions Other Bitcoin ETFs combined lost $72.2 million Fidelity led Thursday’s $430.2 […]
The post BlackRock’s Bitcoin ETF Lost $1.21B While Rivals Held Steady appeared first on Coindoo.
Key Takeaways
- IBIT shed $1.21 billion across five sessions
- Other Bitcoin ETFs combined lost $72.2 million
- Fidelity led Thursday’s $430.2 million sector exit
- ETHA drove 97% of Friday’s Ether ETF outflow
Farside Investors’ daily flow table, checked on November 7, puts IBIT’s net outflow for the five sessions at $1.21 billion, against $1.28 billion for the entire sector.
Take IBIT out and the week is almost flat
Subtracting IBIT leaves a $72.2 million net outflow spread across every other U.S. spot Bitcoin ETF. BlackRock’s fund therefore produced 94.4% of the sector’s net weekly figure, a share measured against the net total rather than against gross redemptions at any single fund.
Scale explains much of that dominance. IBIT held $60.7 billion in net assets on November 6, according to its iShares fund page, which puts the week’s outflow at about 2% of the fund. Two percent in a week is a notable drain for a fund of that size, and in dollar terms it outweighs the combined flows of every smaller competitor.
The run also started before this week’s data. Friday marked IBIT’s sixth consecutive session of net outflows, a streak that began on October 30. Its two largest withdrawals bracketed the week: $405.3 million on Monday and $403 million on Friday.
The same concentration has worked in IBIT’s favor before. Coindoo covered a week when IBIT’s inflows kept the sector positive while other funds lost money. In both weeks, one product decided whether the headline number ended up green or red.
| Session | IBIT | All others | Sector |
|---|---|---|---|
| Mon 2 | −405.3 | +6.7 | −398.6 |
| Tue 3 | −95.0 | −20.6 | −115.6 |
| Wed 4 | −201.2 | +275.8 | +74.6 |
| Thu 5 | −105.0 | −325.2 | −430.2 |
| Fri 6 | −403.0 | −8.9 | −411.9 |
| Week | −1,209.5 | −72.2 | −1,281.7 |
Fidelity carried Wednesday’s inflow and Thursday’s exit
Monday and Tuesday followed the weekly pattern. IBIT lost $500.3 million across the two sessions, while the other funds moved by no more than $20.6 million on either day.
Wednesday produced the week’s only sector inflow. IBIT lost $201.2 million, but the other funds took in $275.8 million, with Fidelity’s FBTC supplying $236.7 million of it. The sector closed $74.6 million positive.
FBTC gave most of that back the next day. Its $199.9 million net outflow on Thursday was the largest of any fund that session and nearly twice IBIT’s $105 million. Grayscale’s GBTC lost $49.9 million and the remaining funds a combined $75.4 million. Outside IBIT, Thursday’s withdrawals reached $325.2 million, about three times BlackRock’s figure, and the sector’s $430.2 million outflow was the week’s largest.
Thursday’s exit coincided with a sharp drop in Bitcoin. Fortune’s daily price check put BTC at about $76,024 on Friday morning, 5.2% below the $80,221 it fetched 24 hours earlier. The flow table records the timing but not the cause, so it cannot show whether falling prices prompted the redemptions or the redemptions added to the fall.
Friday returned to the week’s main pattern. IBIT lost $403 million, or 98% of the sector’s $411.9 million outflow. FBTC took in $42.8 million, and smaller withdrawals elsewhere left the non-IBIT group $8.9 million negative.
FBTC finished the week $93.1 million positive. Its Wednesday inflow and Thursday outflow netted to $36.8 million, Friday added $42.8 million, and Monday and Tuesday together contributed $13.5 million. The table records each fund’s net creations and redemptions, so it cannot show whether money leaving IBIT moved into FBTC.
BlackRock’s Ether fund showed the same pattern on Friday
Farside’s Ethereum ETF data shows $93.3 million leaving U.S. Ether funds on Friday, $90.8 million of it from BlackRock’s ETHA. That gave BlackRock’s two flagship crypto funds 98% of the Bitcoin outflow and 97% of the Ether outflow in the same session. One day is too short to establish that the same investors were behind both.
What a $1.21 billion outflow measures
IBIT is a passive trust built to track Bitcoin’s price, and its prospectus makes clear that the sponsor does not try to time the market. The outflow reflects decisions by the fund’s shareholders, not a bearish call by BlackRock.
Those decisions reach the trust through authorized participants, the broker-dealers permitted to create and redeem IBIT shares directly. They deal only in baskets of 22.64 BTC, worth about $1.71 million each on November 6 according to iShares, so Friday’s $403 million outflow equals roughly 235 baskets returned to the trust. Redemptions on that scale typically follow heavier selling than buying of IBIT shares on the exchange, with authorized participants taking the surplus shares and handing them back. The process kept pricing tight: IBIT’s shares closed Thursday within 0.02% of the value of the bitcoin behind them.
Since the SEC permitted in-kind creations and redemptions for crypto exchange-traded products, authorized participants can receive bitcoin instead of cash. Whether they then hold it, sell it or use it in another trade is not disclosed, so $1.21 billion of IBIT outflows does not equal $1.21 billion of spot Bitcoin sold. Flows are also separate from the price-driven fall in IBIT’s asset value, which shrank as Bitcoin dropped regardless of how many shares were redeemed.
The case against an IBIT-only reading
The strongest objection to treating this as an IBIT-specific story is size. The largest fund will usually post the largest dollar flows in either direction, so its share of a weekly total partly reflects its weight rather than unusual behavior among its investors. Thursday also showed that the rest of the market can produce a bigger daily outflow than IBIT when selling spreads.
The five sessions from November 9 to 13 offer a direct test of which reading fits the data.
Pressure stays with IBIT
IBIT extends its outflow streak while the other funds stay close to flat or net positive.
Selling widens
Non-IBIT funds post another session in which their combined outflow exceeds IBIT’s.
The streak breaks
IBIT records its first net inflow since the run of withdrawals began.
The post BlackRock’s Bitcoin ETF Lost $1.21B While Rivals Held Steady appeared first on Coindoo.
Source: https://coindoo.com/blackrocks-bitcoin-etf-lost-1-21b-while-rivals-held-steady/
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research (DYOR).
