BlackRock has sold roughly $1 billion worth of Bitcoin this week, the firm confirmed, citing poor performance as the reason for the move. The sell-off follows seven consecutive days of net outflows from its spot Bitcoin ETF — the longest such streak since the product launched in early 2024.
The sell-off
BlackRock's IBIT fund has been bleeding capital all week. The firm said it decided to trim its Bitcoin holdings after the price slid below key levels, though it did not specify a target price. The sale represents about 15,000 BTC moved off the fund's balance sheet, based on average prices during the window.
The timing isn't great for Bitcoin bulls. The broader market has already been under pressure from regulatory uncertainty and a general risk-off mood in equities.
ETF outflows pile up
The seven-day outflow streak began on May 18 and hasn't let up. Each day saw net redemptions between $100 million and $250 million from BlackRock's ETF alone, while competitors like Fidelity's FBTC and Ark's ARKB also saw modest withdrawals. Combined, the sector has lost nearly $2 billion in assets this month.
ETF investors tend to move fast when they smell blood. A string of redemptions this long is rare for a product that had been a darling of 2025. BlackRock's decision to sell into that weakness rather than hold suggests the firm sees little near-term catalyst for a rebound.
What poor performance means
The firm's official rationale — “poor performance” — is vague, but in context it likely refers to Bitcoin's price action relative to its cost basis. IBIT's average purchase price sits around $65,000, and with BTC trading in the mid-$50,000s, the fund has been underwater for weeks. Selling now locks in losses but may stem further redemptions from panicking shareholders.
It's a classic asset manager move: cut position, protect the NAV, and avoid being the last one holding the bag. Whether it works is another question.
BlackRock hasn't signaled further sales, but the outflow trend will be the key metric to watch next week. If redemptions slow, the firm may halt the sell-off. If they accelerate, more Bitcoin could hit the market.
The next big test comes Tuesday when weekly ETF flow data for the full week is published. That number will show whether the sell-off is contained or spreading.
