BlackRock exec says 'perfectly normal' as IBIT sees $2.3B outflows in Nov

BlackRock's spot Bitcoin ETF IBIT just took a $2.34B hit in November outflows — but the asset manager's calling it 'perfectly normal' behavior for an ETF that's become one of their biggest cash cows.

Cristiano Castro, BlackRock's business development director, dropped the reality check in São Paulo, saying Bitcoin ETFs have been 'a big surprise' revenue driver this year despite the recent withdrawals.

The bleeding peaked mid-month with $523M exiting on Nov 18 and $463M on Nov 14 — classic ETF volatility according to Castro: 'ETFs are very liquid and powerful instruments. They exist to let people allocate capital and manage cash flow. What we've been seeing is perfectly normal; any asset that starts to experience compression usually has this effect, especially in an instrument that is heavily controlled by retail investors.'

Let's not forget the insane demand earlier this cycle — combined US and Brazil IBIT listings came 'very close to $100 billion' at their peak according to Castro.

And the rebound is already happening: IBIT holders are back in profit with $3.2B cumulative gains after Bitcoin reclaimed $90K last Thursday. Peak gains hit nearly $40B in early October before crashing to just $630M last week — meaning most positions were barely breaking even until the latest pump.

The bleeding stopped last week with spot Bitcoin ETFs posting $70M weekly inflows — finally reversing part of the $4.35B November exodus.

Ether ETFs also bounced back hard with $312.6M weekly inflows after bleeding $1.74B over the previous three weeks. The recovery is officially underway.