BlackRock's spot Bitcoin ETF, IBIT, saw a $528 million net outflow on Wednesday — the second-largest single-day withdrawal since the fund launched. The outflow, driven by a market sell-off tied to escalating tensions with Iran, missed the January record by less than $500,000.
Iran tensions spook institutions
The outflow was part of a broader risk-off move. Institutional investors reacted to the geopolitical news by pulling capital from Bitcoin, mirroring moves in traditional markets. The sell-off hit crypto particularly hard, with Bitcoin price dropping alongside equities. Wednesday's move was the biggest one-day exit from IBIT since late January.
Near-record withdrawal
The $528 million figure narrowly avoided breaking IBIT's all-time daily outflow of roughly $528.5 million set in January. That record still stands, but the close call signals how sensitive the fund is to macro shocks. BlackRock's IBIT has been one of the most popular Bitcoin ETFs since its launch, and large outflows like this one can weigh on sentiment across the sector.
The outflow brings IBIT's cumulative net flows for the month into negative territory, though the fund still holds billions in assets under management. Wednesday's event underscores how quickly institutional sentiment can reverse when geopolitical risks emerge. For now, the January record remains intact.
