BlackRock's Bitcoin ETF Hit by Record $523M Daily Outflow
The world's largest crypto fund sees over $1 billion in weekly withdrawals, fueling a broader $1.2 billion exodus from spot Bitcoin ETFs and shaking investor confidence.
A sharp reversal in sentiment has struck the cryptocurrency market, with BlackRock’s iShares Bitcoin Trust (IBIT), the world’s largest Bitcoin fund, experiencing a record single-day net outflow of $523 million. The massive withdrawal contributed to more than $1 billion being pulled from the fund over the past week, signaling a significant cooling of investor appetite for digital assets.
The selling pressure extends far beyond a single fund. The entire US-listed spot Bitcoin ETF market has been hit by a wave of redemptions, marking the fourth consecutive week of net outflows. Over the past week, these funds collectively bled approximately $1.22 billion, according to market data, amplifying concerns that the initial institutional rush into the new investment vehicles is waning.
This sustained exodus has directly impacted the price of Bitcoin, which tumbled from levels near $95,600 to below $83,000 during the selloff. The price action reflects a broader risk-off mood among investors, driven by a combination of profit-taking, macroeconomic uncertainty, and persistent concerns over the US regulatory landscape for digital assets. Market sentiment indicators have shifted to a state of "extreme fear," a stark contrast to the bullish conviction that characterized the market earlier this year.
The outflows from IBIT are particularly notable given its status as a market leader. After launching in early 2025, the fund quickly amassed tens of billions in assets, becoming a primary gateway for institutional capital to enter the crypto space. However, this week's record redemptions, detailed in reports tracking daily fund flows, challenge the narrative that ETF demand would provide a permanent floor for Bitcoin's price.
Analysts suggest that the prolonged period of withdrawals indicates a maturation of the market, where institutional players are now actively trading in and out of positions rather than simply buying and holding. The recent price decline has likely triggered stop-loss orders and prompted some early investors to secure profits.
Despite the overwhelmingly negative trend, there were tentative signs of stabilization as the week closed. On Friday, the spot Bitcoin ETF sector snapped its losing streak, recording a modest net inflow of approximately $238 million. IBIT itself managed to attract about $60 million, a small but noteworthy reversal that traders will be watching closely. The key question now is whether this small inflow marks a temporary reprieve or the beginning of a genuine stabilization for a market facing its most significant test of institutional resolve to date.