The institutional engine of the market is stuttering. The iShares Bitcoin Trust (IBIT) from BlackRock is experiencing its most severe withdrawal cycle since its inception, with over 2.7 billion dollars withdrawn in five weeks. On Thursday alone, 113 million left the fund, putting it on track for six consecutive weeks of outflows, a record since its launch.
The institutional flow reverses after the October shock
IBIT, which became a $71 billion behemoth during the historic rally of Bitcoin, was the main magnet for institutional capital. This dynamic sharply broke after the historic liquidation wave on October 10, which confirmed the market’s entry into a bearish phase. Since then, managers have been reducing their exposure, amidst year-end closure and rising macro uncertainties.
The decline of Bitcoin, still 27% below its October peak, has not been offset by a strong return of flows. Despite a rebound to $92,000 this week, outflows continue and weigh on sentiment.
Not a structural hemorrhage, but a massive cooling of allocations
According to Glassnode, this outflow cycle marks a clear break with the accumulation regime that had propelled bitcoin to its highs. The movement does not resemble a widespread leakage, but rather a halt in new allocations. In other words: fewer incoming capital, not yet a structural reconsideration of the asset.
However, for the market, IBIT flows have become one of the best barometers of institutional appetite in the United States. And their current trajectory sends a message: major investors are stepping back.
A key market signal approaching 2026
The year-end period amplifies the phenomenon. Between risk management, performance locking, and caution ahead of central bank meetings, institutions prioritize reducing exposure. IBIT, as the most liquid and visible vehicle, bears the brunt.
The question is not so much whether bitcoin will temporarily rise above $90,000. It is to determine whether flows will resume at the start of 2026 or if we are witnessing a lasting shift in the behavior of professional investors.
Currently, IBIT is experiencing its longest streak in the red. And as long as flows do not stabilize, it’s hard to imagine a solid return of the bull trend.
