The IBIT suffered its second-largest single-day net outflow since its inception on Wednesday, falling just short of a January record by under half a million dollars, as an Iran-related sell-off caused institutional investors to withdraw from bitcoin.
By Shaurya Malwa|Edited by Sam ReynoldsUpdated May 28, 2026, 5:58 a.m. Published May 28, 2026, 5:56 a.m. 2 min readMake preferred onKey Points:
- BlackRock’s iShares Bitcoin Trust experienced $527.84 million in net outflows on Wednesday, marking its second-largest single-day withdrawal since its January launch and coming close to its record.
- On that day, the 11 U.S. spot bitcoin ETFs collectively lost $733.43 million, continuing a trend of outflows that has seen over $2 billion withdrawn from the sector in the last two weeks as bitcoin fell below $73,000.
- A notable $1.29 billion dark-pool block sale involving IBIT on Tuesday, coupled with May’s transition from ETF accumulation to distribution, indicates that institutional investors are reducing their bitcoin holdings amidst rising tensions in the Middle East and broader market uncertainties.
On Wednesday, BlackRock's iShares Bitcoin Trust reported a net outflow of $527.84 million, marking its second-largest single-day withdrawal since launching in January 2024, according to SoSoValue data.
This amount narrowly missed the record, as IBIT's largest outflow remains $528.3 million from January 30, with Wednesday's figure falling short by approximately $500,000. The fund now manages about $59 billion in assets and holds nearly 4% of the total bitcoin supply, establishing it as the predominant vehicle for institutional bitcoin investment.
This outflow is part of a larger trend. The combined losses for the 11 U.S.-listed spot bitcoin ETFs reached $733.43 million on Wednesday, with Fidelity's FBTC losing $60.30 million and Grayscale's GBTC experiencing a decline of $104.76 million alongside the IBIT outflow. This ongoing trend has resulted in over $2 billion being withdrawn over several sessions in recent weeks.
(CoinDesk)The outflows coincided with bitcoin dropping below $73,000, trading at $72,978 in Asian trading hours on Thursday, reflecting a 3.4% decline over the previous 24 hours. This decline followed U.S. airstrikes on an Iranian military target near the Strait of Hormuz, reigniting market anxieties that had begun to dissipate. The interactions between ETF outflows and bitcoin's price drop influenced one another, as redemptions compelled BlackRock and other fund managers to liquidate underlying bitcoin to accommodate investor withdrawals.
The IBIT outflow followed a significant event the prior day, when a single investor executed a $1.29 billion sale of IBIT shares in a dark-pool transaction, as CoinDesk reported.
A dark-pool trade allows major players to execute large transactions without alerting the wider market.
Although this block sale does not directly equate to a net outflow, as buyers can absorb the volume, IBIT's actual net redemptions on Tuesday were $192.44 million. Together, these events suggest that institutional investors are strategically reducing their bitcoin exposure as macroeconomic conditions evolve.
Data trends have indicated this shift for weeks. ETF accumulation had already slowed to a net of around 4,500 BTC for the year, and May marked a transition from the consistent buying seen in March and April to distribution, as reported on Wednesday. Bitcoin's price has dropped from above $82,000 on May 6 to below $73,000 currently, with the ETF channel that previously fueled the 2025 rally now experiencing outflows instead.
Whether these outflows signify a tactical withdrawal in response to Middle Eastern developments or a more profound retreat from institutional investors will depend on the stabilization of the situation in the region. IBIT has previously seen extended periods of outflows during this cycle without a lasting reversal, with funds returning each time the macroeconomic landscape improved.
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