The fund that once stood as the crown jewel of institutional crypto adoption is now bleeding assets at an unprecedented rate. BlackRock's iShares Bitcoin Trust, trading under the ticker IBIT on Nasdaq, has recorded a net outflow of $1.26 billion so far in November, marking the largest monthly redemption since its launch in January 2024, according to data from SoSoValue.
The exodus from BlackRock's flagship cryptocurrency product arrives as Bitcoin endures its most punishing correction of 2025. The world's largest cryptocurrency plunged to $89,420 on Tuesday, its lowest level since February and down more than 26% from its October record of $126,250. The slide has erased all of Bitcoin's gains for the year and pushed market sentiment into what analysts describe as extreme fear territory.
IBIT's share price has mirrored the carnage. The ETF has collapsed 16% to $52, a level last seen on April 22, wiping out months of gains that had propelled the fund to historic status as the most successful ETF launch ever.
Institutional Exodus Accelerates
The hemorrhaging from BlackRock is part of a broader institutional retreat from cryptocurrency exposure. This outflow is part of a broader trend affecting the market, with 11 spot Bitcoin ETFs collectively experiencing withdrawals totaling $2.59 billion.
The selling pressure has been relentless. On November 15, investors pulled $463 million from BlackRock's IBIT in a single day, representing the largest single-day outflow on record for the product. That massive redemption came just one day after the 11 U.S.-listed spot Bitcoin ETFs collectively bled $869.86 million, registering their second-highest outflow on record.
So far, spot Bitcoin ETFs have lost $2.33 billion in November. This is already the second-worst outflow while the market is only halfway through the month. February 2025 has brought maximum pain so far with $3.56 billion in combined outflows. If the current trend continues, November could surpass that grim record.
Options Market Flashes Warning Signs
The derivatives market is now signaling that professional traders are bracing for further declines. The 250-day put-call skew has surged to a seven-month high of 3.1%, indicating that put options, used to hedge downside risks, are currently at their most expensive relative to calls since April.
This metric, tracked by MarketChameleon, measures the relative cost of protective put options compared to bullish call options. When the skew rises, it typically indicates that institutional investors are paying premium prices for insurance against further price declines rather than positioning for upside.
The aggressive chase for downside protection reflects a dramatic shift in sentiment from just weeks ago. In late October, Bitcoin was trading near all-time highs, and options markets were dominated by bullish positioning. Now, traders are scrambling to hedge portfolios that have suffered double-digit losses in a matter of weeks.
Fall From Grace
The reversal is particularly striking given IBIT's meteoric rise. The iShares Bitcoin Trust smashed industry records in its launch year of 2024. In just 11 months, it grew to a behemoth with more than $50 billion in assets. Industry analysts called it the greatest ETF launch in history.
Among a crowded field of spot-Bitcoin ETFs, IBIT stands out. It reached over $50 billion five times quicker than the next fastest exchange-traded fund, BlackRock's own iShares Core MSCI EAFE ETF, which took nearly four years to reach the same milestone.
At its peak in late October, BlackRock's IBIT had accumulated an astonishing $89.17 billion in assets under management. The fund's success had helped legitimize Bitcoin as an institutional asset class and played a significant role in driving the cryptocurrency's price above $100,000 for the first time.
But the current selloff has exposed the double-edged nature of institutional adoption. The same large-scale capital flows that propelled Bitcoin to record highs are now accelerating its descent as investors reduce risk exposure.
Macro Headwinds Compound Crypto Woes
Multiple factors have converged to pressure cryptocurrency markets. Fears that the Federal Reserve won't cut rates in December have weighed heavily on crypto prices. The prospect of sustained higher interest rates makes risk assets less attractive compared to safer alternatives like government bonds.
"Crypto is closely linked to macro-economics now more than any time in the past," said Paul Howard, senior director at trading firm Wincent. With markets now pricing in roughly even odds for a 25 basis point rate cut next month, Howard expects Bitcoin to remain muted near current levels.
The broader market selloff in technology stocks has added further pressure. Bitcoin is down nearly 9% week to date, despite briefly reclaiming $107,000 at one point on Tuesday and then rolling over. The token attracts many of the same investors that have poured funds into BigTech stocks, linking the two trades.
Signs of Stabilization?
Despite the historic outflows, some market participants see potential for stabilization. On-chain data shows that while short-term holders have been selling into weakness, long-term conviction among institutional allocators remains intact.
Harvard University increased its holdings in BlackRock's iShares Bitcoin Trust to $442.8 million as of September 30, owning 6.81 million IBIT shares. The dollar value of Harvard's BTC ETF investment dwarfs the combined total of its holdings in Meta, NVIDIA, and Alphabet.
"Institutional conviction remains strong, with Strategy's recent purchase of 8,178 Bitcoin worth $835 million helping offset selling from new entrants and ETF-driven pressure," said Edul Patel, CEO of Mudrex. "At the same time, on-chain data also shows rising activity from short-term holders, a pattern often seen near market bottoms."
Final thoughts
The coming weeks will prove critical in determining whether November's outflows represent a temporary correction or the beginning of a prolonged bear market. Bitcoin's technical picture has deteriorated significantly, with the cryptocurrency now trading below key support levels that had held since early 2025.
For BlackRock's IBIT, the test will be whether the fund can weather this storm and maintain its position as the dominant vehicle for institutional Bitcoin exposure. The ETF that was once celebrated as proof of Bitcoin's arrival on Wall Street now serves as a stark reminder that institutional adoption cuts both ways - the same pipes that channel billions into the market can just as quickly drain them out.
"My sense is with just six weeks left, we've seen the all-time highs for 2025," Howard said. If he's right, investors in BlackRock's record-breaking fund may be settling in for a longer wait than they anticipated.