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BlackRock clients sell $192.3M worth of Bitcoin as IBIT outflows extend to eight straight days
The latest redemption adds to more than $2 billion in outflows from US spot Bitcoin ETFs since mid-May, raising questions about institutional appetite.
BlackRock’s iShares Bitcoin Trust ETF, better known as IBIT, saw roughly $192 million walk out the door on May 26. That makes it eight consecutive days of net outflows, a streak that has now drained more than $2 billion from US spot Bitcoin ETFs since May 14.
The numbers behind the streak
The $192 million outflow on May 26 was notable, but it wasn’t even the worst day in recent memory. That distinction belongs to May 18, when IBIT alone hemorrhaged $448 million in a single session. Across all US spot Bitcoin ETFs that same day, total outflows hit a record $648.64 million.
To put the broader trend in perspective: US spot Bitcoin ETFs collectively manage assets exceeding $100 billion. A $2 billion drawdown over roughly two weeks represents about 2% of total assets.
Adding fuel to the fire, a dark pool sell order worth approximately $130 million in IBIT shares surfaced around May 27. Analysts linked that block trade to a sharp intraday decline in Bitcoin’s price.
What’s actually happening when IBIT sees outflows
When authorized participants redeem IBIT shares, the typical procedure involves transferring Bitcoin to custodial partners rather than selling it directly on exchanges. The Bitcoin still exists, it’s still held, but it’s no longer sitting inside the ETF wrapper.
Why institutions are pulling back
The outflow streak coincides with a broader risk-off mood across financial markets. Treasury yields and inflation data have been the primary culprits, pushing institutional portfolio managers toward a more defensive posture.
What this means for investors
For anyone watching from the sidelines, ETF flow data has become one of the most reliable leading indicators for Bitcoin price action in the post-ETF era. Before January 2024, crypto traders obsessed over exchange wallet movements and whale transactions. Now, the daily IBIT flow number carries arguably more predictive weight than any on-chain metric.
$2 billion in outflows across all US spot Bitcoin ETFs against $100 billion in total assets under management is a 2% adjustment.