BlackRock Bitcoin ETF Sees Over $500 Million Outflows in a Single Day, Institutional Capital Accelerates Withdrawals

According to SoSoValue data, BlackRock's iShares Bitcoin Trust recorded a net outflow of $527.84 million on Wednesday. This number is close to its highest single-day outflow since its launch in January 2024, with only a difference of about half a million dollars. The fund manages approximately $59 billion in assets, accounting for nearly 4% of the total Bitcoin supply, making it a core channel for institutional allocation of crypto assets.

This withdrawal reflects industry-wide tendency; a combined outflow of $733.43 million from 11 spot Bitcoin ETFs across the United States on Wednesday. Among them, FBTC, under Fidelity, saw outflows of $60.3 million, and GBTC, under Grayscale, saw outflows of $104.76 million. The entire industry has been confronted with net outflows for several consecutive trading days, with cumulative outflows exceeding $2 billion in the past two weeks.

The escalation of geopolitical risks directly triggered this round of asset selling. Affected by the U.S. military's airstrike near the Iranian military facilities in the Strait of Hormuz, the price of Bitcoin fell by 3.4% within 24 hours, breaking below the $73,000 mark. Mass redemptions forced issuers like BlackRock to sell Bitcoin spot to cash out, causing a chain reaction between capital outflows and price declines.

Previously, the crypto market had shown signals of institutions reducing their positions. On Tuesday, a single investor privately sold IBIT shares worth $1.29 billion through a block trade in the dark pool, even though the actual net redemption on that day was only $192.44 million. However, the unusual fund movements over two consecutive days indicate that institutions are cutting back on their Bitcoin positions amidst changes in the macro environment.

Overall, Bitcoin spot ETFs have shifted from stable buying to distribution status in May. The price of Bitcoin has plummeted from above $82,000 on May 6th to below $73,000 at present.