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Bitcoin ETF Sees Record $523M Exodus
20 Nov
Summary
- Flagship iShares Bitcoin Trust experienced largest single-day withdrawal.
- Bitcoin fell below $90,000, its lowest in seven months.
- Gold's resilience questions Bitcoin's hedge status.
On Tuesday, investors withdrew approximately $523 million from BlackRock's iShares Bitcoin Trust, marking the fund's largest single-day outflow since its introduction. This significant withdrawal underscores the ongoing selloff in bitcoin, which recently fell below $90,000, a seven-month low. The digital asset has experienced a sharp correction after reaching an all-time high in October.
The outflows from the iShares Bitcoin Trust, the largest spot bitcoin ETF, highlight the severity of the pullback across risk assets. In contrast, gold has shown remarkable resilience, leading some analysts to question bitcoin's efficacy as a hedge or a substitute for the precious metal. Observers suggest a potential shift, with investors moving exposure from bitcoin to gold.
Market watchers attribute the trend to several factors, including profit-taking by long-term holders and increased caution among bitcoin treasury firms. These firms, which had previously ramped up purchases, are now reportedly trading at a discount to their net asset value, dampening expectations for future bitcoin acquisitions.
