BlackRock Downplays IBIT Outflows as Bitcoin ETF Market Shows Signs of Recovery

Heavy withdrawals hit BlackRock’s flagship Bitcoin ETF in November, but company executives say the activity reflects normal market behavior, not a shift in long-term sentiment. Momentum from earlier in the year continues to guide the firm’s outlook, supported by the strong demand that once pushed IBIT toward a major milestone.

Bitcoin ETF Profits Rebound After Steep Pullback Hits BlackRock Products

BlackRock business development director Cristiano Castro discussed the situation at an event in São Paulo. He said demand for Bitcoin ETFs earlier in the year grew far faster than expected. In fact, allocations rose quickly enough for the firm to classify the products among its most important revenue generators. At their peak, IBIT’s combined US and Brazil listings neared $100 billion in assets.

Entering November, the investment vehicle posted a rather tough market outing. The fund recorded an estimated $2.34 billion in net outflows, with the largest moves occurring mid-month. About $523 million exited on Nov. 18, followed by another $463 million on Nov. 14. 

Castro said such swings are a normal feature of ETFs with heavy retail participation. According to him, many investors use these vehicles to manage short-term liquidity rather than long-term positioning.

The fund’s performance improved as Bitcoin climbed back above $90,000 late last week. Positions now show roughly $3.2 billion in cumulative gains after bouncing back from losses during Bitcoin’s recent pullback.

Earlier in October, combined profits for BlackRock’s Bitcoin and Ether ETFs neared $40 billion. Those gains later narrowed to about $630 million before the latest rebound, leaving many accounts close to break-even until prices recovered.

IBIT Neared $100B at Peak as Retail Flows Drove Rapid Expansion

Across the broader market, spot Bitcoin and Ether ETFs ended a four-week streak of outflows. The funds saw $70 million in weekly inflows, trimming part of the $4.35 billion withdrawn in November. Ether ETFs added $312.6 million after three weeks of losses totaling $1.74 billion. Solana products also steadied, posting a modest recovery with $5.4 million in inflows despite a pause in their earlier momentum.

IBIT’s rise has brought several milestones:

• Generated about $245 million in annual fees by October 2025.
• Considered one of the fastest-growing ETFs in market history.
• Holds roughly 3% of Bitcoin’s circulating supply.
• Drew strong participation from retail and advisory channels.
• Supported BlackRock’s expansion of digital-asset products across multiple markets.

Castro said recent outflows should be viewed in context, adding that products with rapid early growth often experience brief pullbacks. Despite November’s volatility, IBIT continues to support BlackRock’s broader digital-asset strategy as institutional and retail investors return to the market after weeks of uncertainty.