BlackRock's spot bitcoin exchange-traded fund (ETF), iShares Bitcoin Trust (IBIT), saw money flow out for nine consecutive trading sessions.
On Nov. 12, daily net outflows from spot bitcoin ETFs approached $300 million, and most of that came from BlackRock products, blockchain media outlet Cointelegraph reported.
Based on Farside Investors data, BlackRock's IBIT posted net outflows of $269.7 million on Nov. 11. That accounted for about 90 percent of total net outflows of about $300 million across spot bitcoin ETFs. Cumulative net outflows from the product over the past nine sessions surpassed $2 billion.
Outflows continued from other products. Grayscale's Bitcoin Trust ETF (GBTC) recorded net outflows of $39.1 million. Morgan Stanley Bitcoin Trust ETF (MSBT) posted net inflows of $9 million. Still, limited inflows did not change the overall trend.
The spot bitcoin ETF market has posted net outflows for five consecutive trading sessions. Cumulative outflows total about $1.44 billion. The larger outflow on Nov. 11 followed three prior sessions in which the pace of outflows had eased somewhat.
Market participants assessed that ETF fund flows have yet to translate into a rebound signal. Bitfinex said slower ETF outflows could be an early stage of building a market bottom, but that alone is not enough to confirm a recovery. It said that even if outflows stop, additional improvements in supply and demand need to be confirmed to view it as a trend reversal.
Bitfinex also presented an analysis of earlier periods of ETF net outflows this year. When net inflows continued for at least three consecutive trading sessions after the outflow trend ended, bitcoin rose a median 6.4 percent over 10 trading sessions. The market has not yet met that condition.
Laser Digital's derivatives trading desk pointed to weak spot demand, a continued decline in the Coinbase premium and large-scale liquidations of leveraged long positions. It also noted that bitcoin barely rose even on the day Nasdaq rebounded nearly 3 percent on Nov. 10.
In this situation, a near-term focus is whether ETF fund flows reverse. With recent outflows concentrated in BlackRock products, whether outflows from IBIT subside is likely to have a direct impact on overall supply and demand for spot bitcoin ETFs and on bitcoin's price trend.
