IBIT attracts massive inflows despite negative performance

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Artem Shendetskii

20.12.2025

IBIT attracts massive inflows despite negative performance — IBIT inflows signal long-term conviction, not momentum trading

BlackRock’s iShares Bitcoin Trust (IBIT) has emerged as one of the most compelling anomalies in the ETF market this year.

Despite being the only fund in the top inflow cohort with a negative year-to-date return, IBIT has attracted roughly $25 billion in net inflows, ranking sixth overall, reports Cointelegraph.

This places it ahead of many traditional equity and bond ETFs that posted strong double-digit gains. Even gold-backed ETF GLD, which is up more than 60% this year, drew less capital than IBIT. Bloomberg ETF analyst Eric Balchunas called the trend a strong long-term signal. He argued that sustained inflows during a down year reveal conviction rather than momentum chasing. In his view, this reflects behavior typical of long-horizon investors rather than speculative traders.

Why strong ETF demand hasn’t lifted Bitcoin prices

Some market participants have questioned why heavy institutional buying through spot ETFs has not translated into higher Bitcoin prices. Balchunas suggested that Bitcoin is increasingly behaving like a more mature asset class rather than a purely speculative one. Early holders may be taking profits or implementing income strategies such as selling call options, absorbing new demand without sharp price appreciation. He also pointed out that Bitcoin rose more than 120% in the previous year, making a period of consolidation unsurprising.

This dynamic can mute short-term price action even amid strong inflows. Recent data supports this view, as US spot Bitcoin ETFs saw $158 million in net outflows on Friday alone. Ether ETFs fared worse, extending their outflow streak to seven consecutive days.

BlackRock downplays volatility and outflows

IBIT itself experienced notable pressure in November, posting around $2.34 billion in net outflows, including two particularly heavy withdrawal days. Still, BlackRock executives have sought to calm concerns about the fund’s trajectory. Speaking at Blockchain Conference 2025 in São Paulo, BlackRock business development director Cristiano Castro emphasized that the firm’s Bitcoin ETFs remain among its largest revenue contributors.

He noted that ETFs are tools for capital allocation and liquidity management, not vehicles designed to rise in a straight line. Periods of inflows and outflows, he said, are a natural part of how institutional investors manage exposure. Castro argued that compression phases do not undermine the long-term role of Bitcoin ETFs in portfolios. Taken together, IBIT’s performance suggests resilience driven by conviction rather than short-term price trends.

Recently we wrote that the crypto market shows signs of stabilization, with total market capitalization rising 1.8% to approximately $2.99 trillion.

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