After months of dominance in the institutional crypto market, BlackRock’s iShares Bitcoin Trust (IBIT) is beginning to feel the pressure of the latest downturn.
The fund, which has been the backbone of spot Bitcoin ETF inflows since launch, has now logged its first back-to-back redemptions in weeks – a reflection of investor nerves as global markets buckle.
Over a two-day stretch ending October 16, IBIT offloaded 544 BTC, worth roughly $57 million, according to figures from HeyApollo. The withdrawals are minor compared to the fund’s enormous reserves of about 804,800 BTC, but the timing – coinciding with Bitcoin’s violent drop below the $105,000 mark – has amplified concerns that institutional sentiment could be shifting.
The broader picture was equally turbulent. Bitcoin’s total market capitalization shrank by nearly $150 billion in 24 hours, erasing much of the late-summer gains and pulling crypto ETFs into their steepest collective decline since August. Data shows that more than 4,800 BTC, equivalent to over $530 million, exited U.S.-listed spot ETFs in a single day.
This wave of selling wasn’t purely technical. Markets were already on edge after President Donald Trump’s renewed tariff threats against China, which included the possibility of 100% import duties. The announcement triggered a cascade of risk-off moves across global assets – equities fell, the dollar strengthened, and gold surged past $4,300 per ounce as traders fled for safety.
For Bitcoin, the selloff proved severe. The coin broke below its 200-day moving average near $107,400, then tested the channel floor around $99,500, reinforcing fears of a deeper correction. Technical traders are now eyeing that region as the final major support before momentum could turn decisively bearish.
Still, despite this turbulence, IBIT remains unrivaled among spot Bitcoin ETFs. Its asset base dwarfs competitors like Fidelity, Grayscale, and VanEck, underscoring the lasting grip BlackRock holds on institutional crypto exposure.
Whether these redemptions mark a short-term wobble or the beginning of a broader pullback remains to be seen. But as geopolitical tensions mount and macro headwinds strengthen, the message from the world’s largest Bitcoin fund is unmistakable – even institutional giants aren’t immune to the storm.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/blackrocks-bitcoin-etf-faces-first-major-redemptions-amid-market-downturn/