BlackRock's IBIT shed 22.7 million shares in four sessions as bitcoin fell to $68,393
iShares data shows IBIT's share count down 1.6% since November 6, roughly $919 million at Thursday's NAV. Bitcoin lost 7% in 24 hours.
Key points
- iShares lists 1,393,000,000 IBIT shares as of November 12, down 22,720,000 from 1,415,720,000 on November 6. At the November 12 NAV of $40.4352, that is about $919 million.
- Shares shrink when holders redeem, so the drop points to about 12,860 BTC leaving the fund, by our estimate from iShares' basket data.
- CoinGecko showed bitcoin at $68,393 at about 12:43 a.m. ET on November 13, down 7.0% in 24 hours. IBIT's NAV fell 4.07% on November 12.
IBIT keeps shrinking
BlackRock's iShares Bitcoin Trust (IBIT), a U.S. spot bitcoin exchange-traded fund, had 1,393,000,000 shares outstanding as of November 12, according to its iShares page. On November 6 the count was 1,415,720,000, as we reported on November 8.
That is 22.72 million fewer shares in four trading sessions, a 1.6% drop. Shares shrink when large firms hand blocks back to the fund and take out the bitcoin behind them. At the November 12 net asset value (NAV) of $40.4352 a share, the shares that left are worth about $919 million.
iShares lists one creation basket as 22.64 BTC. Using the 40,000-share basket size behind that figure, the redemptions released roughly 12,860 BTC. Treat that as an estimate: the fund's daily holdings file is the final word.
The fund still held $56.32 billion in net assets on November 12, and its NAV fell 4.07% that day, iShares shows.
The longer view points the same way. On October 26, the iShares page listed 1,430,480,000 shares, net assets of $64.69 billion and a NAV of $45.2252. Since then the share count is down about 2.6%, the NAV about 10.6% and net assets about 12.9%. Most of the shrinkage in dollars came from the lower bitcoin price, and the rest from holders cashing out.
What the price did
CoinGecko showed bitcoin at $68,393 at about 12:43 a.m. ET on November 13, down 7.0% in 24 hours and 9.6% over seven days. A day earlier, at 6:45 a.m. ET on November 12, it traded at $72,896, so the coin lost about 6.2% in under 18 hours.
Ether fell harder over the week. CoinGecko had it at $1,913.59, down 6.2% in 24 hours and 13.8% over seven days.
Flows and price moved the same way, but the data cannot show which one led. Fund holders selling can add pressure, and a falling price can push holders to sell.
LC Insight analysis
This section is our reading of the facts above, not a statement of fact.
- We think IBIT's share count is the clearest signal right now: it ended November 6 close to its September 30 level, then fell 1.6% in four sessions.
- In our view, a shrinking share count during a 7% one-day drop in bitcoin shows fund holders selling into the fall rather than buying it.
What's next
- IBIT's share count in the next iShares update.
- IBIT's daily holdings file for the bitcoin count behind the 22.72 million redeemed shares.
- Bitcoin against $68,393.
Disclaimer. This article is based on public information and the sources listed below as of the update time shown. It is for information only and is not investment, legal or tax advice. Figures may change as companies and authorities publish new data.
