Investors pulled an eye-catching $523 million from BlackRock’s iShares Bitcoin Trust this week — the largest withdrawal since the ETF hit the market early last year. The move followed bitcoin’s sharp slide below $90,000, its lowest level in seven months, signaling a growing loss of risk appetite across crypto and equities.
The outflows highlight a dramatic shift in sentiment just weeks after bitcoin notched a record high in October. Analysts say long-term holders and institutional treasury firms have started taking profits or scaling back exposure. Many of those companies built large bitcoin positions through the year, but now some are trading at discounts to their net asset values, weighing down demand.
The shift could also be part of a larger rotation into gold and other defensive assets. With IBIT down nearly 20% this quarter and bitcoin entering a technical correction, more traders are questioning the idea that crypto acts as a hedge. The crypto bull cycle may not have ended, but the confidence definitely has.
Get in Touch 
