Bitcoin News Today: Institutions Redirect Bitcoin ETF Holdings to Direct Custody Amid Market Volatility

BlackRock's iShares Bitcoin Trust (IBIT) recorded $114 million in net outflows on November 28, reflecting broader market volatility and shifting institutional sentiment toward Bitcoin [according to reports]. The outflow aligns with a broader trend of declining confidence in Bitcoin ETFs, as [Santiment data shows] U.S. spot Bitcoin ETFs collectively saw $2.8 billion in net outflows since November 12. This includes a single-day withdrawal of $891.5 million on November 20—the largest of 2025—underscoring heightened anxiety among institutional investors [according to reports].

Bitcoin's price has retreated to around $87,700, down 36% from its October 6 record high of $126,199 [according to analysis]. The decline coincides with mixed flows in spot Bitcoin ETFs, where inflows and outflows alternated weekly. For instance, the week ending November 21 saw $1.09 billion in outflows for IBIT, while the Technology Select Sector SPDR Fund (XLK) recorded the largest inflow of $773.51 million amid broader S&P 500 sector outflows [according to data].

Despite the outflows, institutional adoption of Bitcoin remains a key theme. Texas, for example, recently purchased $5 million worth of IBIT as part of its strategy to establish a sovereign-grade Bitcoin reserve, with a second $5 million allocation pending formal custody protocols [according to reports]. The state's approach highlights how large institutions are using ETFs as temporary vehicles to gain exposure to Bitcoin while building infrastructure for direct custody [according to analysis]. This mirrors moves by entities like Harvard University and Abu Dhabi Investment Council, which have also increased IBIT holdings [according to reports].

The ETF's role as a bridge to self-custody is critical. Unlike ETFs, which do not remove Bitcoin from circulating supply, direct purchases for cold storage reduce tradable supply, potentially stabilizing price dynamics [according to experts]. Analysts suggest that if more states adopt similar reserve strategies, Bitcoin's supply curve could become more inelastic, amplifying price sensitivity [according to analysis].

Meanwhile, BlackRock faces scrutiny beyond its Bitcoin ETF. New York City Comptroller Brad Lander has recommended pulling $42 billion in assets from BlackRock's index funds, citing inadequate climate action [according to reports]. The move reflects a broader debate over ESG (environmental, social, governance) practices in institutional investing, with both Republicans and Democrats criticizing the firm's approach [according to analysis].

The interplay of market volatility, institutional strategy, and regulatory dynamics underscores Bitcoin's evolving role in traditional finance. While short-term outflows signal caution, long-term adoption—whether through ETFs or direct custody—continues to shape the asset's trajectory.