BlackRock’s Bitcoin ETF Nears Record Outflow as Bitcoin Plunges

TLDR

• BlackRock’s Bitcoin ETF experienced net outflows totaling $527.84 million on Wednesday.
• This marked the second-largest daily withdrawal for IBIT since its launch in January 2024.
• Collectively, U.S. spot Bitcoin ETFs saw outflows of $733.43 million on the same day.
• Bitcoin’s price dropped below $73,000, influenced by renewed Middle East tensions impacting market sentiment.
• A significant $1.29 billion dark-pool trade involving IBIT drew further attention to institutional selling activity.

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(SeaPRwire) –   BlackRock’s Bitcoin ETF has recorded one of its largest daily withdrawals since its inception, coinciding with substantial redemptions in spot Bitcoin funds amid a sharp decline in BTC price.

Data from SoSoValue indicates that BlackRock’s iShares Bitcoin Trust, known as IBIT, experienced net outflows of $527.84 million on Wednesday. This figure represents the fund’s second-largest single-day withdrawal since trading commenced in January 2024.

BlackRock’s Bitcoin ETF Nears Record Outflow

The recent outflow was close to IBIT’s largest daily withdrawal of $528.3 million, which occurred on January 30. According to SoSoValue figures, Wednesday’s total fell short of that record by approximately $500,000.

IBIT continues to be the leading institutional bitcoin vehicle, managing around $59 billion in assets. The report also highlights that the fund holds nearly 4% of Bitcoin’s total supply.

This withdrawal was not an isolated event. SoSoValue data revealed that the 11 U.S.-listed spot Bitcoin ETFs collectively lost $733.43 million on Wednesday. Fidelity’s FBTC recorded net outflows of $60.30 million, while Grayscale’s GBTC saw outflows of $104.76 million.

Spot Bitcoin ETFs Extend Withdrawal Streak

According to the same fund-flow data, U.S. spot bitcoin ETFs have now experienced multiple consecutive sessions of withdrawals. Over the past two weeks, more than $2 billion has exited these products.

The pressure on ETFs occurred as Bitcoin’s price fell below $73,000. During Asian trading hours on Thursday, the cryptocurrency was priced at $72,978, a 3.4% decrease over the preceding 24 hours, according to market data cited in the report.

The price drop followed heightened geopolitical tensions after U.S. airstrikes targeted an Iranian military site near the Strait of Hormuz. The report suggests this event reignited conflict concerns that markets had recently begun to discount.

Large IBIT Trade Adds To Focus

A separate transaction earlier in the week also drew attention to BlackRock’s Bitcoin ETF. On Tuesday, one investor sold $1.29 billion worth of IBIT shares through a dark-pool block trade, as reported.

A dark-pool trade enables large investors to execute private transactions without immediately disclosing the full order to the public market.

The report clarified that the block sale did not equate to a net ETF outflow, as buyers can take the opposing side of such trades. IBIT’s actual net redemption on Tuesday was $192.44 million, according to the same data.

Nevertheless, the Tuesday block trade and Wednesday’s outflow indicated that some institutional investors were reducing their Bitcoin exposure amidst a worsening macro environment.

Bitcoin Price Falls As ETF Demand Weakens

The report also indicated that ETF accumulation had slowed this year, resulting in a net total of approximately 4,500 BTC. In May, fund activity shifted from the consistent buying observed in March and April to net selling.

Bitcoin has declined from over $82,000 on May 6 to below $73,000, according to market figures cited in the report. The ETF channel, which previously supported Bitcoin’s rally in 2025, has now exerted downward pressure in May.

The duration of these withdrawals will likely depend on future fund-flow data and the geopolitical situation in the Middle East, the report suggests. IBIT has experienced outflow streaks earlier in its cycle, followed by renewed inflows when macro pressures eased.