Bitcoin’s plunge drags down the world’s largest spot Bitcoin ETF, with record single-day redemptions and nearly $2 billion in net outflows in November.

Bitcoin prices plunged sharply, triggering panic-selling among investors and causing heavy losses for related ETFs. On Tuesday, BlackRock’s iShares Bitcoin Trust (IBIT), the world’s largest spot Bitcoin ETF, experienced a record one-day outflow of $523 million. This figure marks the highest single-day redemption since the fund’s launch in January 2024, and is the fifth consecutive trading day of net redemptions. According to the latest data compiled by Bloomberg, IBIT has seen nearly $2 billion flow out in November, while the total outflow from the entire US spot Bitcoin ETF market this month has exceeded $3 billion. Bitcoin’s price has plunged nearly 30% from its all-time high reached in October, falling on Tuesday to a low of $89,232—the lowest level since April. This wave of selloffs once again highlights the fragility of confidence in the digital asset market. Since the market washout on October 10 cleared about $19 billion in leveraged positions, the cryptocurrency market has yet to fully recover. Market analysts warn that the combination of ETF outflows and selling by long-term holders is tightening liquidity and pushing Bitcoin prices lower. Massive Outflows Spark Market Concerns BlackRock’s IBIT fund’s large-scale outflows are seen by the market as a significant bearish signal. As the world’s largest spot Bitcoin ETF, IBIT had delivered strong performance since its launch, with assets under management exceeding $72 billion and net inflows of nearly $26 billion this year. However, sustained outflows in recent weeks have broken the fund’s previous winning streak. Tuesday’s price drop below key levels left investors in all 12 US spot Bitcoin ETFs collectively in a loss-making position. Dilin Wu, research strategist at Pepperstone, said: “The combination of ETF outflows and selling by long-term holders is tightening market liquidity, leading to short-term price declines in Bitcoin and highlighting weakening market confidence.” Sean Dawson, head of research at crypto options platform Derive.xyz, pointed out that a large number of traders are buying downside protection against Bitcoin falling to $80,000 before December 26. He added: “Given ongoing concerns about the resilience of the US job market, and with the probability of a December rate cut barely above a coin toss, the macro backdrop gives traders little reason to stay bullish through year-end.” Risk Warning and Disclaimer Markets involve risk; investment needs to be approached with caution. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial situation, or needs of any individual user. Users should consider whether any opinion, view, or conclusion in this article fits their particular circumstances. Invest at your own risk.