BlackRock has downplayed concerns after its flagship spot Bitcoin ETF, IBIT, saw more than $2.3 billion exit the fund in November. Despite the pressure, the world’s largest asset manager insists the product remains one of its fastest growing and most profitable offerings.
BlackRock Defends November Withdrawals
Speaking at the Blockchain Conference 2025 in São Paulo, Cristiano Castro, BlackRock’s business development director, said the recent outflows do not reflect weakening confidence. He described the withdrawals as routine market behaviour, particularly for a highly liquid ETF dominated by retail participation.
He explained that such movements tend to occur when an asset enters a compression phase. According to Castro, IBIT’s structure allows investors to efficiently manage liquidity, which naturally results in fluctuations in fund flows.
IBIT’s Peak Near $100 Billion in Assets
Castro pointed to IBIT’s explosive growth earlier in the year as evidence of strong underlying demand. Combined United States and Brazil listings under the IBIT brand came close to $100 billion in assets at their highest point. He added that the pace at which the fund attracted allocations was unexpected even within BlackRock, becoming one of the company’s largest revenue generators.
IBIT performance over the past month. Source: SoSoValue
The remarks followed a month in which IBIT recorded an estimated $2.34 billion in net outflows. The two heaviest withdrawal days were 14 November with about $463 million redeemed and 18 November with around $523 million pulled out.
Investors Back in Profit After Bitcoin Rebound
Investor sentiment improved late in the month as Bitcoin climbed above $90,000, helping IBIT holders return to profit. According to market estimates, cumulative gains now stand at roughly $3.2 billion after erasing earlier losses during the recent downturn.
BlackRock’s Bitcoin and Ether ETF holders had enjoyed nearly $40 billion in unrealised gains at their peak in early October. This figure fell to around $630 million last week due to market volatility. The latest recovery pushed many positions back into profit territory.
Bitcoin and Ether ETFs Break Outflow Streak
Across the wider market, spot Bitcoin ETFs ended a four week run of heavy redemptions with a weekly inflow of $70 million. The turnaround offsets a portion of the $4.35 billion withdrawn throughout November.
Spot Ether ETFs also posted a recovery with inflows of $312.6 million after losing $1.74 billion over the prior three weeks. Analysts view the renewed inflows as a sign that confidence is gradually returning to the digital asset ETF segment.
