Bitcoin ETF Flows Stabilize After Turbulent November as BlackRock Defends Market Dynamics

Bitcoin ETFs Stage Recovery After Heavy November Outflows

Spot Bitcoin exchange-traded funds have begun recovering from a challenging November, posting $70 million in weekly inflows and reversing part of the $4.35 billion that exited the sector during the previous month^[2]. The rebound marks the end of a four-week outflow streak that had raised questions about institutional appetite for crypto exposure.

Spot Ether ETFs similarly rebounded, logging $312.6 million in weekly inflows after losing $1.74 billion over the previous three weeks^[2].

BlackRock Calls Outflows 'Perfectly Normal'

BlackRock, the world's largest asset manager, has moved to reassure investors after its iShares Bitcoin Trust (IBIT) experienced approximately $2.34 billion in net outflows throughout November^[2]. The withdrawals included two particularly large redemptions, with about $523 million leaving on November 18 and roughly $463 million on November 14^[2].

Speaking at the Blockchain Conference 2025 in São Paulo, BlackRock business development director Cristiano Castro characterized the volatility as expected market behavior. "ETFs are very liquid and powerful instruments," Castro said. "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."^[2]

Castro noted that BlackRock's Bitcoin ETFs had become one of the company's biggest revenue drivers, with assets approaching $100 billion at their peak^[2]. He called the growth "a big surprise" given how rapidly allocations surged this year^[2].

Strategy Outlines Bitcoin Sale Conditions

Meanwhile, Strategy (formerly MicroStrategy), the largest corporate holder of Bitcoin, has clarified the circumstances under which it would liquidate its massive BTC holdings. CEO Phong Le indicated that Bitcoin sales would only occur as a "last resort" if the company's modified net asset value (mNAV) drops and capital becomes unavailable^[1].

The statement comes as Strategy faces significant fixed payment obligations, with annual dividend bills ranging from $750 million to $800 million tied to preferred shares introduced this year^[1]. Le's plan prioritizes funding these payouts through equity raised at a premium to mNAV rather than through Bitcoin sales^[1].

"The more we pay the dividends out of all of our instruments every quarter, that's seasoning the market to realize that even in a bare market, we're going to pay these dividends. When we do that, they start to price up," Le explained^[1].

New Dashboard Addresses Investor Concerns

To address growing investor scrutiny following Bitcoin's recent price volatility and a sell-off in digital-asset treasury stocks, Strategy launched a "BTC Credit" dashboard last week^[1]. The company claims it maintains sufficient dividend coverage for decades, even under scenarios where Bitcoin's price remains flat^[1].

According to Strategy's analysis, its debt remains well-covered if Bitcoin falls to the company's average purchase price of approximately $74,000, and would still be manageable even at $25,000^[1].

Le also defended the long-term investment thesis for Bitcoin, emphasizing its qualities as a scarce, non-sovereign asset with global appeal. "It's non-sovereign, has a limited supply… people in Australia, the US, Ukraine, Turkey, Argentina, Vietnam and South Korea — everyone likes Bitcoin," he added^[1].