BlackRock has downplayed the $2.34 billion in November outflows from its IBIT spot Bitcoin ETF, saying the withdrawals are normal and reflect the fund’s liquidity. The investment firm noted that earlier demand for IBIT pushed total assets close to the $100 billion mark.
Speaking at an event in São Paulo, Cristiano Castro, BlackRock’s director of business development, said the company’s Bitcoin ETFs have quickly become one of its major revenue sources. He described their rapid growth this year as a “big surprise,” with allocations rising far faster than expected.
His remarks came after a difficult month for BlackRock’s U.S.-listed IBIT. The fund recorded an estimated $2.34 billion in net outflows during November. The largest withdrawals appeared mid-month, including about $523 million on Nov. 18 and roughly $463 million on Nov. 14.
Castro explained that the behavior is consistent with how ETFs operate. He noted that ETFs are designed to let investors move capital and manage liquidity. According to him, periods of compression often lead to outflows, especially in products used heavily by retail investors.
IBIT demand previously approached $100 billion
Castro highlighted that earlier in the cycle, combined U.S. and Brazil IBIT listings neared $100 billion in assets. He said this level of demand shows the strong interest the market had in the product at its peak.
BlackRock’s spot Bitcoin ETF holders recently returned to profit as Bitcoin climbed above $90,000. Investors in IBIT are now sitting on a cumulative gain of around $3.2 billion after losses from the latest correction reversed. Earlier in October, IBIT and BlackRock’s Ether ETF investors saw unrealized gains approach nearly $40 billion before dropping to about $630 million last week.
Bitcoin and Ether ETF flows stabilize
Spot Bitcoin ETFs broke a four-week streak of outflows by posting $70 million in inflows for the week, partially reversing the $4.35 billion withdrawn during November.
Spot Ether ETFs also recovered. They recorded $312.6 million in weekly inflows after losing $1.74 billion over the prior three weeks.
