BlackRock's Bitcoin ETF Sheds Record $463M as Crypto Funds See Worst Week Since February

Core Insights - Crypto exchange-traded products (ETPs) experienced significant withdrawals, totaling $2 billion, as investors reacted to rising macroeconomic uncertainty [1] - BlackRock's Bitcoin ETF, IBIT, recorded a single-day withdrawal of $463.1 million on November 14, marking a notable event in the market [1] - The overall assets under management for digital asset ETPs decreased from a peak of $264 billion in early October to $191 billion, reflecting a 27% decline [3] Market Dynamics - The recent wave of redemptions has led to a sharp decline in Bitcoin and Ethereum ETPs, contributing to a total of $3.2 billion in outflows over three consecutive weeks [2][3] - The U.S. was the primary contributor to global outflows, accounting for 97% of the total, approximately $1.97 billion, while Switzerland and Hong Kong followed with $39.9 million and $12.3 million in redemptions, respectively [4] - In contrast, Germany saw inflows of $13.2 million, as investors viewed price weakness as a buying opportunity [5] Future Outlook - ETF flows are expected to remain closely linked to macroeconomic conditions, with potential outflows influenced by negative economic indicators and a hawkish Federal Reserve stance [5] - Conversely, positive developments regarding tariffs, regulatory frameworks, and monetary policy could lead to improved market sentiment and a potential price reversal [6]