BlackRock Bitcoin ETF Records $528 Million Outflow as Institutional Selling Accelerates

BlackRock’s iShares Bitcoin Trust (IBIT) recorded a massive $527.84 million net outflow on May 28, marking its second largest single day withdrawal since the ETF launched in Jan 2024.

The outflow came extremely close to the fund’s all time record of $528.3 million set on Jan 30, missing it by less than half a million dollars. IBIT remains the largest US spot Bitcoin ETF, holding around $59 billion in assets and representing nearly 4% of total Bitcoin supply.

US Bitcoin ETFs See Over $733 Million in One-Day Outflows

The selling was not limited to BlackRock alone. Across all 11 US spot Bitcoin ETFs, total net outflows reached $733.43 million in a single day.

Other major funds also saw redemptions, including Fidelity’s FBTC with $60.30 million in outflows and Grayscale’s GBTC losing $104.76 million. The entire ETF sector has now seen more than $2 billion leave over the past two weeks, continuing a multi-day trend of institutional selling.

Geopolitical Tensions Drive Institutional De-Risking

The outflows came as Bitcoin dropped below $73,000, triggered by renewed US military strikes near the Strait of Hormuz amid rising tensions with Iran. The price decline and ETF redemptions reinforced each other, as fund issuers were forced to sell Bitcoin holdings to meet investor withdrawals.

A separate large move also added pressure earlier in the week, when a single investor sold $1.29 billion worth of IBIT shares through a dark pool block trade. While not counted as net outflows, it signaled heavy institutional repositioning.

Institutional Sentiment Turns Cautious

Analysts say ETF flows have shifted from steady accumulation earlier in the year to distribution in May. Bitcoin has fallen from above $82,000 in early May to below $73,000 now, as investors reduce exposure amid geopolitical uncertainty and market volatility.

Some observers note that similar outflow periods in the past have been temporary, with capital returning once macro conditions stabilize, but short-term sentiment remains weak.