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

BlackRock's Bitcoin ETF experienced its largest outflow since August, shedding $290 million in a single day, reflecting a short-term institutional sentiment shift amidst macroeconomic uncertainty. On October 30, U.S. Bitcoin ETFs faced a net outflow of $388.43 million, with BlackRock's IBIT significantly contributing to this figure. Analysts attribute these outflows to macro uncertainties, including recent statements from Federal Reserve Chair Jerome Powell concerning interest rates, sparking concerns over future market stability. Despite the weekly negative inflow, October's total ETF inflows remained positive, totaling $3.61 billion, exceeding September's numbers. This suggests that current outflows represent a temporary recalibration of market dynamics rather than a definitive decrease in institutional demand. Historically, strong inflows have characterized Q4 periods, hinting at potential resilience if macro conditions stabilize. Overall, while short-term bearish sentiments prevail, long-term trends indicate continued institutional interest and potential growth in Bitcoin adoption.

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