BlackRock's spot Bitcoin ETF sold $527.8 million worth of the cryptocurrency on Thursday, the biggest single-day outflow from the fund since it began trading. The move rattled an already jittery market, with traders pointing to the size of the sale as a fresh source of bearish pressure.
Largest outflow on record
The $527.8 million divestment from BlackRock's iShares Bitcoin Trust (IBIT) dwarfed any previous daily redemption. Data from the fund's filings show no prior day came close to that level of selling. The outflow alone would have accounted for roughly 0.3% of Bitcoin's total market capitalization at current prices, though the exact number of coins sold was not disclosed.
Thursday's selloff came after a relatively quiet period for the ETF, which had seen mostly modest inflows over the past month. The sudden reversal caught many market participants off guard.
Sentiment takes a hit
The sale compounded existing bearish factors that have dragged Bitcoin lower this week. The cryptocurrency had already fallen about 4% since Monday amid broader risk-off moves in global markets. BlackRock's move amplified that decline, with Bitcoin briefly dipping below the psychologically important $60,000 level before recovering slightly.
Traders on social media and trading desks scrambled for explanations, though no single catalyst emerged. Some speculated the sale could be tied to a rebalancing or a large institutional withdrawal, but the fund has not commented on the reason.
The question now is whether Thursday's outflow is a one-off or the start of a broader trend. BlackRock's IBIT remains the largest Bitcoin ETF by assets under management, with roughly $18 billion in holdings as of Wednesday. A sustained outflow would mark a significant shift in institutional appetite.
Investors will be watching Friday's flow data closely. If another large redemption materializes, it could deepen the current selloff and raise questions about whether the ETF boom is losing steam. For now, the market is left to digest the biggest single-day withdrawal in the fund's short history.
