BlackRock's Bitcoin ETF Sheds Record $463M as Crypto Funds See Worst Week Since February

Last week, digital asset investment products experienced a significant decline, shedding approximately $2 billion in total as market uncertainty intensified. In a notable instance, BlackRock's Bitcoin ETF, known as IBIT, recorded a staggering outflow of $463 million on November 14, marking the highest one-day withdrawal for the fund. This trend is reflective of a broader risk-off sentiment amongst investors, whereby U.S. funds comprised 97% of the total outflows, highlighting a retreat in the American market. Notably, while the U.S. faced redemptions, Germany saw modest inflows as some investors capitalized on price weakness. The cumulative three-week outflow has reached $3.2 billion, occurring amidst unfavorable macroeconomic signals and volatile cryptocurrency markets. These fund withdrawals coincided with a downturn in both Bitcoin and Ethereum markets, with Bitcoin's value dropping below $98,500 on a particularly tumultuous trading day. As ETF flows remain sensitive to economic conditions, experts expect continued fluctuations depending on macro factors, asserting that outflows and inflows could pivot with changing market sentiments.

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