BlackRock IBIT, despite large-scale outflows in November... Long-term outlook is 'positive'

Source: DigitalToday Original Title: BlackRock IBIT, Despite Large-Scale Leakage in November… Long-Term Outlook 'Positive' Original Link: https://www.digitaltoday.co.kr/news/articleView.html?idxno=608824

BlackRock's Bitcoin spot Exchange Traded Fund ( ETF ) product, iShares Bitcoin Trust ( IBIT ), recorded a large capital outflow in November, but BlackRock remains optimistic from a long-term perspective.

According to Cointelegraph, a blockchain media outlet, on the 30th of last month, Cristiano Castro, BlackRock's business development director, stated at an event held in São Paulo that “IBIT has become one of BlackRock's main sources of revenue,” and explained that “although there was an outflow of $2.34 billion in November, this is a natural phenomenon due to the liquidity characteristics of ETFs.”

IBIT recorded massive outflows of $523 million and $463 million on November 18 and 14, respectively. However, Director Castro emphasized that “ETFs are a powerful tool for managing capital flows” and noted that “such compression phenomena are common, especially in markets driven by individual investors.” IBIT had at one point recorded assets nearing $100 billion through listings in the United States and Brazil.

Meanwhile, as the price of Bitcoin recovered to the $91,000 range, IBIT investors recorded a cumulative profit of $3.2 billion, offsetting their losses. Investors in IBIT and BlackRock's Ethereum spot ETF also recorded $40 billion in profits in early October, but this has recently decreased to $630 million following a correction. Over the four weeks of November, $4.35 billion was withdrawn from Bitcoin spot ETFs, but recently there has been a weekly inflow of $70 million, indicating a rebound.