BlackRock's IBIT Sheds $291M in a Day, as Bitcoin ETFs Pull Back

BlackRock's Bitcoin ETF, IBIT, experienced its largest outflow since August, shedding $290 million due to short-term macroeconomic uncertainty and a closed arbitrage window. This surge in withdrawals occurred amid a broader trend of institutional sentiment shifting, as U.S. Bitcoin ETFs collectively saw a net outflow of $388.43 million on October 30. Analysts suggest that these outflows are tied to concerns over economic stability following recent macro developments, including comments from Federal Reserve Chair Jerome Powell regarding future interest rate cuts. Despite these negative shifts, the overall picture for institutional investment remains positive, with total ETF inflows in October amounting to $3.61 billion, surpassing September's figures. Experts predict that the longer-term demand for Bitcoin and Bitcoin ETFs could rebound if macro conditions stabilize. The current bearish sentiment in the options market further indicates apprehension among traders. Overall, while recent activities point to short-term recalibrations in investor behavior, the outlook for institutional Bitcoin investment appears resilient.

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