BlackRock, $1.2 Billion Net Outflow from Bitcoin and Ethereum ETFs in One Week

▲ BlackRock, Bitcoin (BTC), Ethereum (ETH)/AI generated image ©

Nearly $1.2 billion in funds flowed out of BlackRock spot ETFs, which were considered a symbol of institutional capital, in just one week. Analysis suggests that profit-taking and risk-aversion sentiment are spreading across the Bitcoin and Ethereum markets.

According to Finbold, a cryptocurrency media outlet, on May 24 (local time), BlackRock, the world's largest asset manager, recorded a total net outflow of $1.197 billion from its spot Bitcoin (BTC) and Ethereum (ETH) ETFs from the 18th to the 22nd. Most of this occurred in the iShares Bitcoin Trust (IBIT).

Approximately $1.008 billion flowed out of IBIT during the same period. The largest outflow, amounting to $448.4 million, occurred on the 18th, followed by a net outflow of $325.6 million on the 19th. Although the outflow slowed somewhat thereafter, an additional $103.7 million on the 21st and $68.9 million on the 22nd further indicated a contraction in investor sentiment.

Ethereum spot ETFs also could not avoid selling pressure. BlackRock's ETHA experienced a total net outflow of $189.3 million over the week. The largest daily outflow was $59.4 million recorded on the 19th, with $55.4 million on the 18th and $38 million on the 21st also flowing out.

The media analyzed that as volatility in the cryptocurrency market recently expanded, institutional investors reduced their risk exposure or engaged in profit-taking. Specifically, it explained that with Bitcoin prices moving in the upper $70,000 range and Ethereum maintaining a bearish trend within the $2,000-$2,400 box range, pressure for ETF fund outflows increased.

However, some parts of the market interpret this net outflow not as a simple fund exit but as a process of institutional investors readjusting their positions. The media reported that while continuous redemption flows could be a short-term burden, there is a possibility that they could act as a catalyst for a rebound if investor sentiment recovers in the future.

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