BlackRock’s Bitcoin ETF Sees Record Outflow as Market Turns Cautious

• BlackRock’s Bitcoin ETF saw its largest outflow with $430 million pulled on May 30 ending a month-long inflow streak.
• Bitcoin ETF outflows hit $616 million as prices dropped below $105,000 showing rising market caution among investors.
• Ethereum ETFs gained with $70 million inflows into ETHA while Bitcoin funds faced heavy withdrawals and price pressure.

BlackRock’s iShares Bitcoin Trust (IBIT) recorded a major shift on May 30, with $430.8 million exiting the fund. This marked the end of a 31-day streak of continuous inflows. It also became the fund’s largest single-day net outflow since its launch in January 2024. The previous record stood at $418.1 million, withdrawn on February 26.

Major Pullback Hits Bitcoin ETFs

The pullback extended across all US-listed spot Bitcoin ETFs. On Friday, combined outflows reached $616.1 million. Ark Invest’s ARKB faced the largest single outflow, losing $120.1 million. Bitwise’s BITB followed with $35.3 million in withdrawals. Grayscale’s GBTC saw $16.2 million leave the fund, and Fidelity’s FBTC lost $14 million.

This shift came just one day after Bitcoin ETFs broke a 10-day inflow streak. On May 29, investors withdrew $346.8 million from spot Bitcoin ETFs. BlackRock’s IBIT still gained capital that day, making its sudden reversal more significant.

Bitcoin Price Slides Amid Selling Pressure

Bitcoin’s price followed the ETF trend and showed weakness. After reaching a high of $110,000 earlier in the week, it dropped under $105,000 by Thursday. By Saturday, the price dipped further toward $103,000. At present, Bitcoin trades at $103,715, showing a 1.53% decline in the last 24 hours. The ongoing selling pressure has impacted investor sentiment.

Market observers suggest that the recent outflows are not driven by retail panic. Instead, large holders appear to be rotating supply toward long-term investors. The exit from ETFs reflects cautious repositioning, rather than disorderly selling.

Ethereum ETFs Attract Investor Interest

While Bitcoin ETFs experienced exits, spot Ethereum ETFs gained new traction. BlackRock’s iShares Ethereum Trust (ETHA) saw $70.2 million in inflows on Friday. Since its debut, ETHA has brought in over $4.6 billion, leading all Ethereum-focused ETFs in inflows. Overall, US Ethereum ETFs now report more than $3 billion in net flows.

ETHA’s price has climbed in step with Ethereum’s rally. Over the past month, the share price has jumped 44% and now trades at $19.49.

Regulatory Moves Boost ETHA Prospects

BlackRock recently updated its ETHA filing to allow in-kind redemptions. This change has helped attract more inflows. Asset managers are also urging the SEC to allow staking features for ETH and Solana ETFs . On Friday, RexShares submitted a formal proposal requesting this option.

Despite strong inflows, Ethereum ETFs still make up a small portion of trading activity. Data from Glassnode shows that ETFs account for just 1.5% or less of Ethereum’s daily volume.