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BlackRock's Bitcoin ETF Accumulates Billion-Dollar Losses Amid Market Plummet
Source: Exame Original Title: BlackRock's Bitcoin ETF Accumulates Billion-Dollar Loss Amid Cryptocurrency Decline Original Link: The BlackRock bitcoin ETF is at risk of recording its worst monthly performance since its debut in January 2024. The fund is the category leader in the North American market but has suffered from the intense drop of the cryptocurrency in recent days, recording significant losses.
ETF monitoring data indicates that the fund, called IBIT, has accumulated a total loss of US$ 1.26 billion (R$ 6.71 billion at the current exchange rate) in the month of November. And the market trend points to more losses in the short term.
If the movement is confirmed, BlackRock's bitcoin ETF would have a rare negative record in its trajectory. The fund still boasts the best debut in the history of the ETF segment in the United States, with the fastest growth observed in the sector.
However, neither its gained size protects the ETF from losses associated with the performance of the cryptocurrency itself. And the accumulated losses in November also reflect a broader negative scenario that affected the entire category of asset ETFs.
In total, the 11 bitcoin ETFs traded in the United States have a monthly negative balance of US$ 2.59 billion (R$ 13.79 billion, at the current exchange rate ). The numbers indicate a widespread loss situation, despite the IBIT weighing more on the results.
The value of each share in the fund plummeted 16%, reaching $52 at the moment. The last time the price reached this level was on April 22, also during a period of more intense decline of the cryptocurrency. Currently, the asset is trading below $95,000.
Until the beginning of November, the drop in bitcoin was mainly due to sales by older retail investors. However, starting last week, ETFs also began to face more significant selling flows, further worsening the scenario for the cryptocurrency.
On the other hand, analysts highlight that the losses represent a small slice of the total assets of the funds. In total, the category lost about 2.5% of its total assets, with accumulated contributions in the year of $23 billion.