Finance
Investors Pull Record $523 Million From BlackRock's Flagship Bitcoin ETF
Published by Global Banking & Finance Review®
Posted on November 19, 2025
2 min readLast updated: January 20, 2026
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Investors pulled $523M from BlackRock's Bitcoin ETF as Bitcoin prices hit a seven-month low, sparking a shift towards gold investments.
Investors Withdraw Record $523M from BlackRock Bitcoin ETF
By Manya Saini and Niket Nishant
(Reuters) -Investors pulled roughly $523 million from BlackRock's flagship iShares Bitcoin Trust on Tuesday, according to data from Farside Investors, marking the fund's largest single-day withdrawal since its launch.
Bitcoin, a bellwether for crypto markets, fell below $90,000 this week, its lowest level in seven months.
IBIT, the largest spot bitcoin ETF, has attracted strong investor demand since its launch in January 2024 and has been central to the crypto ETF boom.
The fund outflows highlight the severity of the selloff in bitcoin, which has corrected sharply after hitting a record high in October, and underscore how deep the pullback has been across risk assets.
In contrast, gold has remained resilient, calling into question bitcoin's status as a hedge or as a replacement for the yellow metal. Some analysts have said the moves point to investors swapping bitcoin exposure for gold.
"The crypto market entered a hangover in August," said Kraken's Global Economist Thomas Perfumo, adding a lot of that demand was driven by borrowed money.
"Momentum seemingly peaked during the summer. But the truth is this hangover trend started months ago," he added.
Analysts have also pointed to profit-taking by long-term shareholders as well as growing caution among bitcoin treasury firms, which had stepped up their purchases earlier in the year.
"Bitcoin treasury companies purchased nearly $50 billion of bitcoin over the past year. Recently, many of these firms have begun trading at a discount to net asset value, which weighs on near-term market expectations for net new bitcoin purchases by these firms," said Brian Vieten, research analyst at Siebert Financial.
The shift comes at a time when several heavyweight investors have raised concerns about stretched valuations across asset classes.
"An ongoing lack of speculative spirits is weighing on bitcoin," said José Torres, senior economist at Interactive Brokers.
IBIT, which has over $73 billion in assets, has fallen 19% quarter-to-date.
(Reporting by Manya Saini and Niket Nishant in Bengaluru; Editing by Krishna Chandra Eluri)
Key Takeaways
- •Investors withdrew $523 million from BlackRock's Bitcoin ETF.
- •Bitcoin prices fell below $90,000, a seven-month low.
- •Gold's resilience questions Bitcoin's status as a hedge.
- •Analysts suggest a shift from Bitcoin to gold investments.
- •Bitcoin treasury firms trading at a discount impacts market.
Frequently Asked Questions about Investors pull record $523 million from BlackRock's flagship bitcoin ETF
1What is a bitcoin ETF?
A bitcoin ETF (Exchange-Traded Fund) is a type of investment fund that tracks the price of bitcoin and is traded on stock exchanges, allowing investors to gain exposure to bitcoin without directly owning it.
2What is a selloff?
A selloff refers to a rapid decrease in the price of an asset, typically due to a large number of investors selling their holdings, often triggered by negative news or market sentiment.
3What is a hedge?
A hedge is an investment strategy used to reduce the risk of adverse price movements in an asset, often involving derivatives or other financial instruments.
4What is a treasury firm?
A treasury firm is a financial institution or department responsible for managing a company's cash flow, investments, and financial risks, often dealing with currency and interest rate fluctuations.