Record $1.26B Outflow Hits BlackRock Bitcoin ETF as Bearish Options Cost Soars

BlackRock's spot bitcoin ETF, IBIT, has registered record outflows this month amid a price slide and a sharp rise in the cost of bearish options used to hedge against further market declines.

The Nasdaq-listed BlackRock Bitcoin ETF, IBIT, has recorded a net outflow of $1.26 billion so far this month, marking the largest monthly redemption since its launch in January 2024, according to data from SoSoValue. This outflow is part of a broader trend affecting the market, with 11 spot Bitcoin ETFs collectively experiencing withdrawals totaling $2.59 billion.

IBIT's price has collapsed 16% to $52, the level last seen on April 22, data from TradingView show.

The price crash has traders aggressively chasing put options as a form of protection against further declines. This is reflected in the 250-day put-call skew tracked by MarketChameleon, which measures the relative cost of puts compared to calls.

The 250-day put-call skew has surged to a seven-month high of 3.1%, indicating that put options, used to hedge downside risks, are currently at their most expensive relative to calls since April.