BlackRock Bitcoin ETF Sees Record Outflows as Price and Hedging Costs Spike
BlackRock’s spot Bitcoin ETF, IBIT, has faced unprecedented outflows this month amid a sharp price decline and rising costs for bearish options.
The Nasdaq-listed ETF recorded a net $1.26 billion redemption in November, the largest monthly outflow since its January 2024 launch, according to SoSoValue. This follows a broader trend in the market, with 11 spot Bitcoin ETFs collectively experiencing $2.59 billion in withdrawals.
IBIT’s price has dropped 16% to $52, reaching levels last seen on April 22, per TradingView data. The decline has prompted traders to buy put options for downside protection.
The 250-day put-call skew, a measure of the relative cost of puts versus calls, has surged to 3.1%, a seven-month high, indicating that downside hedges are currently at their priciest relative to calls since April, according to MarketChameleon.
These developments highlight investor caution around BlackRock’s Bitcoin ETF as the market navigates heightened volatility.
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