BlackRock Bitcoin fund drops $213 million before inflation report

BlackRock Bitcoin and Ethereum investment products recorded huge withdrawals as investors prepared for another important US CPI report. The asset manager's iShares Bitcoin Trust recorded $213.2 million in outflows, while its iShares Ethereum Trust lost another $119.3 million. Combined, the two funds shed approximately $332.5 million in a single session.

The withdrawals came hours before the October Consumer Price Index report, which could influence expectations for another Federal Reserve interest rate increase. The latest withdrawals extend a difficult period for crypto investment products. US spot Bitcoin ETFs recorded $201 million in combined net outflows on November 9, with Morgan Stanley's MSBT attracting $22.1 million.

Ethereum investment products faced even heavier pressure, with US spot Ethereum ETFs recording $184.6 million in net outflows. BlackRock's Bitcoin fund has now recorded seven consecutive sessions of withdrawals, losing $1.66 billion since October 30. November's cumulative Bitcoin ETF outflows reached $1.48 billion through November 9.

Also in marketsJPMorgan raises bitcoin fund holdings to nearly $540 million

These figures show institutional investment demand has weakened considerably, according to Yahoo Finance. Markets have already priced in approximately an 85 percent probability of another quarter-point rate increase. Persistent inflation could reinforce that outlook, putting additional pressure on risk-sensitive assets.

Bitcoin faces particular sensitivity to changes in interest rate expectations because it does not generate a yield. A hotter-than-expected CPI reading could encourage further defensive positioning across cryptocurrency markets.