Bitcoin News Today: Harvard Buys BlackRock's Bitcoin ETF as Others Flee-Why the Divide?

BlackRock's bitcoin ETF, the iShares Bitcoin Trust (IBIT), has experienced a record $1.26 billion in outflows this month, marking the largest redemption since its January 2024 launch, according to SoSoValue data. The fund's price has plummeted 16% to $52, a level last seen in April, as investors increasingly hedge against further declines with costly put options. This follows a broader trend: 11 U.S. bitcoin spot ETFs collectively saw $2.59 billion in withdrawals, with BlackRock's IBIT and ARKB both posting significant redemptions. The four-day consecutive outflows underscore a shift in liquidity dynamics within the crypto ETF market.

Amid the sell-off, Harvard University has emerged as a notable holder of IBIT, boosting its stake to $442.8 million as of September 30, according to a Harvard Management Company filing. The university's investment in BlackRock's ETF now dwarfs its combined holdings in tech giants like Meta, NVIDIA, and Alphabet. This move highlights institutional confidence in crypto assets despite recent volatility. However, the trend contrasts with other investors liquidating positions. Wisconsin's Investment Board, for instance, sold its entire $300 million stake in the BlackRock ETF earlier this year.

Market analysts point to bearish sentiment as a key driver of the outflows. The 250-day put-call skew-a measure of the relative cost of put options versus calls has surged to a seven-month high of 3.1%, indicating that downside protection has become increasingly expensive. This aligns with broader market jitters, as Bitcoin ETF inflows dropped $2.3 billion from their peak in November, marking the largest outflow since May 2025.

The turmoil in crypto ETFs coincides with regulatory developments in Brazil, where officials are considering expanding the financial transaction tax (IOF) to cover cross-border stablecoin transactions. The move, aimed at closing a regulatory loophole, could generate significant revenue for the government amid fiscal challenges. Brazil's crypto market, dominated by stablecoins like Tether's USDT, saw $42.8 billion in transactions in the first half of 2025 alone.

While BlackRock's ETF struggles with redemptions, the company remains a focal point for institutional investors. Harvard's continued accumulation of IBIT shares contrasts with broader market trends, suggesting that long-term holders still view the fund as a strategic asset. Meanwhile, the ETF's performance highlights the growing interplay between macroeconomic factors, regulatory shifts, and investor behavior in the crypto space.