BlackRock's Bitcoin ETF records zero inflows for two consecutive days, signaling institutional caution amid market volatility

Data from Farside Investors reveals that BlackRock (IBIT) last recorded an inflow on Nov. 25. Since then, the ETF giant has not registered interest from institutional players.

BlackRock (NYSE:IBIT) last had an inflow on Nov. 25, according to data from Farside Investors. But institutional investors have shown no interest in the exchange-traded fund since then.

This development may come as a surprise to many, considering that BlackRock’s performance has often propped up the ETF market.

However, market volatility amid the ongoing bull run appears to have given institutional investors pause. With Bitcoin’s price fluctuations leaving investors guessing, they might have adopted a cautious approach.

Among other players in the ETF market, only Bitwise’s BITB and Grayscale’s BTC have registered two consecutive days of inflows. Bitwise had $6.5 million and $48 million inflows on Nov. 26 and 27, respectively. Grayscale, meanwhile, recorded $4.8 million and $12 million.

Despite the positive inflows from the duo, they were not enough to keep the Bitcoin ETF market in the green on Nov. 26. The market suffered a net outflow of $122.8 million.

Given BlackRock’s typical large inflows, the ETF giant could have helped prevent a negative flow if not for the market’s existing caution.

Recently, BlackRock’s Bitcoin ETF performance hit a major milestone compared to other products in the ETF market. IBIT, within 211 days, crossed $40 billion in total assets.

Earlier in November, IBIT had taken the ETF market by storm when its trading volume hit $1 billion in just 20 minutes. These performances have been affected by the current market volatility and caution adopted by investors.

This caution may continue until a significant shift occurs in the broader cryptocurrency space, according to analysts.

As of press time, Bitcoin was trading at $95,269.74, up 0.7% in the last 24 hours. BTC had reached a high of $97,357 in previous trading.