BlackRock’s IBIT Sees Record $418M Outflow Amid BTC Sell-Off

BlackRock’s iShares Bitcoin Trust (IBIT) faced a record $418.1 million net outflow as Bitcoin’s price decline intensified.

This marks the fund’s largest single-day withdrawal since its launch in January 2024.

The broader cryptocurrency market also experienced heavy selling, with investors pulling nearly $3 billion from U.S. spot Bitcoin ETFs in the past week.

BlackRock Remains Top Bitcoin ETF Despite Sell-Off

Bitcoin has dropped 21% from its all-time high of $109,026.02, sparking concerns among institutional investors.

The cryptocurrency experienced a decline of more than 15% during this month, which caused market sentiment to become more cautious.

As a result, many investors moved their funds away from Bitcoin-related investment products.

Market volatility has led to increased redemptions across several spot Bitcoin ETFs.

On February 26 the funds saw the second-biggest withdrawal history with $754.6 million withdrawn.

During the past week, Bitcoin suffered $3 billion worth of outflows, which reinforced market price reductions.

Despite the sell-off, IBIT remains the largest spot Bitcoin ETF in the U.S. market.

Since its inception, the fund has received a total of $40.2 billion from investors and oversees $51.6 billion in assets.

IBIT also leads in trading volume, accounting for 72% of Bitcoin ETF transactions this week.

Fidelity, ARK Invest, and Grayscale ETFs Hit Hard

Fidelity’s Wise Origin Bitcoin Trust (FBTC) recorded a $145.7 million outflow on Wednesday, marking the second-highest withdrawal among Bitcoin ETFs.

After broad investment products experienced a sell-off, market values declined further.

Since market instability continues, investors keep reevaluating their asset position allocations.

ARK Invest’s ARK 21Shares Bitcoin ETF (ARKB) also experienced significant withdrawals.

On the same day, the fund lost $60.5 million, reflecting concerns about Bitcoin’s declining price.

Grayscale’s Mini BTC fund followed closely, with $56 million in net outflows. The sell-off is not limited to a single fund but affects the entire U.S. spot Bitcoin ETF market.

Investors that operate through institutions seem to be reorganizing their investments during rising uncertainty.

The market’s negative response results from concerns about economic instability alongside policy alteration fears.

Ethereum ETFs See Heavy Outflows

Investor withdrawals remain consistent among exchange-traded funds that base their operations on Ethereum.

BlackRock’s iShares Ethereum Trust (ETHA) saw a $69.8 million outflow on Wednesday.

The removal of funds from Ethereum ETFs achieved its greatest level during the week when it exceeded $69.8 million on Wednesday.

During the preceding five days, spot Ethereum Exchange-Traded Funds experienced a total withdrawal volume of $244.4 million.

This development shows how market-wide issues affect the crypto market. Digital asset prices continue to fluctuate extensively, which makes investors hesitate to invest.

The market downturn is not limited to Bitcoin and Ethereum. Prices within The Block’s GMCI 30 index dropped 12% according to market trends this week.

The market-wide uncertainty has shown its effects on both major cryptocurrencies and all smaller altcoins throughout this recent decline.

The current market withdrawals occur at a time when both economic and political situations are becoming more uncertain.

The current market volatility is attributed to President Trump’s proposed tariffs, as analysts report that this causes additional market uncertainty.

The present market conditions have convinced institutional investors to adopt safer strategies regarding their cryptocurrency investments.

The factors behind the continuous selling of crypto investment products remain.

Market sentiment changed because of high interest rates, regulatory risks, and macroeconomic instability.

Investors show a selective approach toward digital assets because they want to evaluate their future market values.