BlackRock is downplaying a month of heavy withdrawals from its spot Bitcoin exchange-traded fund (ETF), with an executive describing the recent $2.34 billion in November outflows as a normal function of the market. The asset manager remains confident in the product’s long-term prospects, pointing to its overall growth and the recent market rebound.

A Sign of a Healthy, Liquid Product

Speaking at the Blockchain Conference 2025 in São Paulo, Cristiano Castro, BlackRock’s business development director, called the company’s Bitcoin ETFs a major revenue driver and expressed surprise at how quickly allocations grew this year. He addressed the significant outflows from the US-listed IBIT fund, which were concentrated mid-month with withdrawals of approximately $523 million on November 18 and $463 million on November 14.

Castro explained that such movements are expected for highly liquid investment vehicles. “ETFs are very liquid and powerful instruments,” he said. “They exist to let people allocate capital and manage cash flow. What we’ve been seeing is perfectly normal.” He suggested this effect is common when an asset experiences price compression, particularly with a product heavily used by retail investors.

To put the outflows in perspective, Castro highlighted the fund’s earlier success, noting that combined assets in the US and Brazil listings under the IBIT ticker came “very close to $100 billion” at their peak.

Investors Return to Profit as Market Rebounds

The recent market recovery has already shifted the narrative for IBIT investors. With Bitcoin climbing back above $90,000, holders of BlackRock’s spot Bitcoin ETF have returned to a position of profitability. The fund’s investors now have a cumulative gain of about $3.2 billion, a sharp reversal from the previous week when profits had dwindled to just $630 million.

This positive trend extends beyond BlackRock. The broader spot Bitcoin ETF sector recently ended a four-week streak of withdrawals, attracting a net inflow of $70 million for the week. This helped offset the $4.35 billion that exited the sector throughout November. Spot Ether ETFs also saw a strong rebound, recording $312.6 million in weekly inflows after three consecutive weeks of losses totaling $1.74 billion.

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