BlackRock’s Bitcoin ETF posts record $1.26 billion in monthly outflows

BlackRock’s spot Bitcoin ETF (IBIT) on Tuesday hit $1.26 billion in net outflows for this month. The outflows were the largest monthly redemption since the fund’s launch in January 2024. 

IBIT’s price also plummeted by about 16% to $52. The drop was IBIT’s lowest level since April 2024, which is driving traders to options as a form of protection against further declines. According to data tracked by MarketChameleon, the 250-day put-call skew has surged to a seven-month high of 3.1%.

Ethereum ETFs record negative flows 

The metric measures the relative cost of puts compared to calls, and the increase indicates that put options are currently at their most expensive relative to calls since April. On-chain data also revealed that IBIT’s redemptions are part of a broader market trend, with all the other Bitcoin ETFs recording $2.59 billion in outflows. 

Data from Farside showed that spot Bitcoin ETFs saw $245.5 million in redemptions on Monday, led by $145.5 million in outflows from IBIT. Other BTC ETFs from Fidelity, Grayscale, Bitwise, Ark Invest, and VanEck also posted notable outflows.

“The outflow underscores a deepening caution among institutional investors, reflecting broader macroeconomic headwinds like fiscal uncertainty and elevated interest rate expectations that are eroding the store of value narrative for these legacy assets.”

-Nick Ruck, Director at LVRG Research.

The record outflows come as Bitcoin has been steadily declining since last October, driven by the record-length U.S. government shutdown and compounded by fading optimism for a December interest rate cut. At the time of publication, Bitcoin is currently trading at $91,445, down more than 3.6% in the last 24 hours. 

Bitcoin’s price dropped below $90,000 late Monday night, a level never seen in the past seven months. Ruck mentioned that BTC’s sharp drop places the majority of 2025’s institutional buyers underwater for the first time. He also believes it triggers more outflows if sentiment doesn’t stabilize soon.

Spot Ethereum ETFs also posted $182.8 million in outflows on Monday, with BlackRock’s spot ETH ETF (ETHA) having $193 million in outflows, followed by Fidelity’s ETF fund with $3 million in outflows. Grayscale’s ETHE recorded $13 million in inflows. Spot Ethereum ETFs recorded $911.4 million in outflows for the five-straight days of net outflows.

Ruck argued that the outflow trend in Bitcoin and Ethereum signals a maturing yet risk-averse crypto market, where both digital assets are increasingly viewed as vulnerable to equity selloffs. He also believes that intensified price pressure could push BTC and ETF down further if outflows persist, potentially triggering a wider altcoin correction.

At the time of publication, Ethereum is trading around $3,033, down more than 0.5% for the day. ETH has also plummeted more than $1.5 in the last 7 days and 9.35% during the previous 30 days.

Altcoin ETFs post inflows 

Despite the outflows in BTC and ETH funds, the recently launched spot altcoin ETFs recorded positive flows on Monday. Canary Capital’s spot XRP ETF brought in $25.41 million, following the $243 million recorded last Friday. The firm’s spot Litecoin ETF also recorded $2 million in net inflows yesterday.

Spot Solana ETFs also recorded net inflows of $8.26 million. Bitwise’s BSOL and Grayscale’s GSOL recorded major inflows, while VanEck’s newly launched Solana fund, VSOL, recorded zero outflows on its first day.

Bloomberg Analysts Eric Balchunas and James Seyfatt revealed that two more Solana ETFs are scheduled to launch on Tuesday, including Canary’s SOLC and Fidelity’s FSOL.

Ruck also acknowledged that inflows into Solana, XRP, and Litecoin ETFs point to early signs of capital rotation toward altcoins. He also believes there are clear regulatory paths in place and altcoins have the potential to gain higher market capitalization. He said the diversification strategy could accelerate if altcoin ETF approvals continue in the near future.

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