BlackRock’s Bitcoin ETF Bleeds $430M in Single-Day Rout—Inflow Streak Crashes

Wall Street’s crypto darling stumbles as IBIT sees first major outflow since launch. Turns out even BlackRock isn’t immune to the ’sell the news’ crowd—who knew?

The $430 million exit punches a hole in the fund’s previously unshakable inflow narrative. Guess those institutional ’hodl’ promises weren’t written in blockchain after all.

Pro tip for the suits: next time maybe don’t schedule your redemptions during a Fed announcement week. Crypto markets have zero respect for traditional finance’s playbook.

BlackRock’s IBIT Still Dominates Bitcoin ETF Inflows

Before this reversal, IBIT attracted $6.5 billion in May alone, making it one of the strongest months since its debut in January 2024.

IBIT’s rapid ascent is not limited to the crypto space. Within 18 months, it climbed into the top 25 US-listed ETFs by assets under management, which many have described as unprecedented.

At the same time, the fund ranks among the top five ETFs for year-to-date inflows across over 4,200 US-listed funds.

IBIT hits new monthly record for inflows…

Nearly $6.5bil in May.

Has now taken in money 31 of past 32 trading days overall.

via @sidcoins pic.twitter.com/mWWkoImjFD

According to ETF Store president Nate Geraci, IBIT’s performance has been exceptional. He pointed to the fund’s consistent appeal during both bullish and uncertain market conditions as evidence of its dominance in the sector.

“What a run over the past 30+ days though. IBIT now pushing $ 70 billion in assets

Industry analysts attribute IBIT’s momentum largely to growing institutional demand for Bitcoin.

Bloomberg ETF analyst Eric Balchunas highlighted that IBIT has recently absorbed more than 100% of net Bitcoin ETF inflows. This marks an unusual shift from its typical 70% share.

The IBIT vs Everyone Else FLOW disparity is interesting. Normally IBIT takes in 70% of the net inflows but lately it’s over 100%. My theory: the latest rally was more an institutional buying spree than retail (perhaps sparked by the decoupling and lessened vol). https://t.co/9mNLCUaOEz

This institutional pivot comes as inflation concerns, economic uncertainty, and improved US regulatory clarity drive traditional investors toward digital assets.

Bitcoin has increasingly been seen as a hedge against fiat devaluation and systemic risk, prompting corporations and nation states to adopt it as part of their treasury strategy.

As a result, Bitcoin’s price surged to a record high above $111,000 in May. The rally highlighted the growing influence of institutional capital in driving the crypto market.

According to BeInCrypto data, the top cryptocurrency has since pulled back to around $105,000 over the past week.