BlackRock Sees Largest Outflow Since ETF Launch
BlackRock’s iShares Bitcoin Trust (IBIT) has ended its 31-day inflow streak with a record-breaking outflow of $430.8 million on May 30, marking its largest single-day withdrawal since the fund launched in January 2024. This surpasses the previous record of $418.1 million set on February 26.
This abrupt shift marks a significant deviation in institutional behavior, ending over a month of consistent investor confidence.
Despite the outflow, BlackRock still holds approximately $70 billion in Bitcoin assets, indicating its dominant position in the U.S. spot Bitcoin ETF market.
All Bitcoin ETFs Record Net Outflows
The outflow wasn’t isolated to BlackRock. All 11 U.S. spot Bitcoin ETFs recorded net outflows for the second day in a row. On May 30, the group experienced $616.1 million in total withdrawals, following $346.8 million the previous day.
This two-day downturn follows a previous 10-day inflow streak, suggesting a notable shift in short-term sentiment.
Interestingly, while other issuers saw outflows on May 29, BlackRock still recorded a net inflow that day, drawing praise from analysts and fund managers for its strategic resilience.
Analysts Dismiss Panic Narrative
Despite the sharp outflows, industry experts are downplaying fears of retail panic.
“The sell-off isn’t retail panic. It’s literally the quiet transfer of supply to the strongest hands,” said Kyle Chasse, founder of Master Ventures.
This sentiment reflects a belief that institutional players are consolidating their holdings, rather than exiting the market altogether.
Disconnect Between Inflows and Price Action
Bitcoin’s spot price currently sits at $103,700, down 2.27% in the past 24 hours, despite the $6.2 billion in inflows into IBIT during May.
“Significant ETF inflows haven’t translated into proportional price gains,” noted Derive founder Nick Forster.
This disconnect raises questions about the actual market impact of ETF-driven demand, particularly as large investors may be hedging or diversifying through multiple instruments.
Conclusion
The record outflows from BlackRock’s Bitcoin ETF mark a critical moment in ETF market behavior, yet the underlying investor strategy remains complex and multifaceted. While short-term volatility has spooked some market watchers, analysts suggest the core fundamentals of institutional interest remain intact.