Investors withdraw record $523 million from BlackRock’s bitcoin ETF

Investors are showing caution in the cryptocurrency market, withdrawing a record $523 million from BlackRock’s iShares Bitcoin Trust as Bitcoin dips below $90,000, signaling a sharp correction in the world’s largest digital asset.

Investors pulled a record $523 million from BlackRock’s iShares Bitcoin Trust on Tuesday, marking the largest single-day outflow since the fund’s launch in January 2024. The withdrawal coincided with Bitcoin falling below $90,000, its lowest level in seven months.

The selloff highlights growing caution among investors and the broader correction in risk assets after Bitcoin hit record highs in October. Analysts point to several reasons for the outflows: profit-taking by long-term holders, reduced speculative activity, and growing concern about stretched valuations across asset classes. Some Bitcoin treasury firms, which had purchased nearly $50 billion of the cryptocurrency over the past year, have begun trading at a discount to net asset value, further dampening near-term buying expectations.

Market reactions were sharp: Bitcoin’s correction has reinforced doubts about its reliability as a hedge compared with traditional safe-haven assets like gold. Overall, the outflows underscore a period of heightened volatility in crypto markets, with investors reassessing risk exposure amid rising interest rates and global market uncertainty.