BlackRock’s iShares Bitcoin Trust is deep into its roughest patch since launch – and the numbers tell the story. After a record-breaking November exodus, the world’s largest Bitcoin ETF is now enduring a six-week outflow streak that signals a decisive shift in investor sentiment.
Bitcoin slump reflects a deeper shift in sentiment
Once seen as Wall Street’s gateway into digital assets, BlackRock’s iShares Bitcoin Trust (IBIT) is quickly losing its shine. More than $2.7 billion has exited the fund in the five weeks through 28 November, with another $113 million pulled on Thursday, 4 December, according to Bloomberg. The withdrawals mark IBIT’s longest outflow streak since its January 2024 debut.
Even with total assets still above $71 billion, the mood has clearly soured. FactSet data shows investors withdrew $2.2 billion in the weeks leading into Thanksgiving – nearly eight times October’s total and the worst monthly figure in the ETF’s short history. Despite a brief stabilisation in Bitcoin in recent days, redemptions have continued, underscoring a market that has firmly shifted into risk-off territory.
Bitcoin’s own slide is compounding the pressure. Trading near $88,900, the cryptocurrency is down 8.5% year-to-date, sharply diverging from the S&P 500’s 16% rally in 2025. Bloomberg notes it’s the first time since 2014 that U.S. equities have surged while Bitcoin has simultaneously slumped.
Trump boom fails to materialise
The broader crypto market has shed over $1 trillion since early-October’s heavy liquidation wave triggered a prolonged downturn. Retail traders, who chased early-2024’s explosive gains, have been quick to retreat as volatility returned. Institutions, often viewed as crypto’s stabilising force, have been pulling back as well – a trend reflected clearly in IBIT’s persistent outflows.
The political narrative hasn’t offered much support either. Hopes for a “Trump boom” in digital assets have faded despite Bitcoin briefly breaking above $126,000 earlier this year. Subsequent losses have forced the industry to reassess expectations around policy and adoption.
Comments from SkyBridge founder Anthony Scaramucci underscored the growing concern. On his podcast, he argued that the former president’s promotion of personal meme-coin projects has damaged sentiment rather than boosted it – raising questions about credibility, potential conflicts of interest and broader market integrity.
Meanwhile, Bitcoin’s once-reliable correlation with risk assets has broken down. AI-focused equities continue to surge, gold is hovering near record highs, yet Bitcoin is moving to a weaker, more isolated rhythm.
Outlook: rough patch or early warning for 2026?
What remains unclear is whether IBIT’s historic outflow streak is simply a temporary bout of profit-taking and risk aversion, or an early warning of deeper challenges ahead for digital assets. With institutional flows now firmly in retreat and Bitcoin decoupling from traditional market drivers, the coming months will be critical in determining whether crypto can regain its footing – or if 2026 brings a more difficult chapter.
Ready to start trading Forex? Join iXBroker today and kick-start your trading journey now!
