Investors in BlackRock’s iShares Bitcoin Trust (IBIT) have returned to profits after Bitcoin recovered above $90,000, turning positions accumulated during the prior correction into gains. The rebound returned an estimated $3.2 billion in unrealized profits to ETF holders and unfolded during a period of rotation and heavy outflows across Bitcoin ETF products.
IBIT’s profitability resurfaces as Bitcoin reclaims key pricing levels
Bitcoin climbed back above $90,000 after dropping from an October peak of $126,200 and briefly touching the $80,000 area, ending a seven-month downturn. The recovery benefitted IBIT investors, whose ETF — launched in January 2024 — scaled to nearly $100 billion in assets under management and became BlackRock’s most profitable crypto fund, supported by a 0.25% expense ratio and traditional brokerage access.
Despite renewed profitability, market flows showed conflicting behavior: in November 2025, Bitcoin ETFs logged net outflows of approximately $3.7 billion, and IBIT registered record-level redemptions, including $523 million on November 19 and $355 million on November 21. These redemptions indicate that part of the renewed gains were taken as profit, reflecting liquidity rotation and active positioning.
Infrastructure and product design continue to evolve. Nasdaq ISE proposed increasing IBIT options limits from 250,000 to 1,000,000 contracts, while BlackRock advanced a filing for a Bitcoin yield ETF intended as a follow-on product to IBIT. Institutional interest has expanded into structured instruments referencing the ETF’s performance.
For traders and treasury desks, the return above $90,000 represents both potential reward and significant downside risk. Profit-taking impulses coexist with volatility, macro uncertainty, and references to a possible short squeeze, while indicators such as a “death cross” remain present. Execution strategies therefore hinge on caution and adaptability.
From an institutional exposure standpoint, ETFs still offer regulated access and deep liquidity, but large outflows highlight execution costs and slippage risk during periods of stress. Hedging models and allocation frameworks now rely heavily on flow monitoring and redemption sensitivity.
IBIT’s return to profitability showcases Bitcoin’s capacity to recover after sharp declines, but also exposes the fragility and reflexivity of ETF capital flows within the broader market.