Is BlackRock Selling Bitcoin? What's Really Behind the $405 Million IBIT Outflow

BlackRock’s iShares Bitcoin Trust (IBIT) posted a $405.3 million net outflow on November 2, sparking viral claims that BlackRock is selling Bitcoin (BTC). The asset manager is not trading for itself, however.

Its clients are cashing out. For BTC holders, the distinction cuts both ways, since redemptions still push coins out of the fund and onto the market.

Is BlackRock Selling Bitcoin, or Are Its Clients?

The claim spread on X after Whale Insider framed the outflow as a BlackRock sale.

Spot Bitcoin exchange-traded funds (ETFs) hold BTC directly. When investors redeem shares, the fund releases coins to match its smaller share count.

The $405.3 million therefore reflects client decisions rather than a shift in BlackRock’s own position. The firm earns a 0.25% annual fee on IBIT assets, so outflows cost it revenue.

According to Farside, it was IBIT’s largest single-day outflow since June 26. Total US spot Bitcoin ETF flows reached negative $398.6 million.

Fidelity’s FBTC was the only fund with inflows, adding $6.7 million.

Why Did One Day Erase a Week of IBIT Inflows?

The reversal was abrupt. IBIT attracted $410.6 million over four sessions between October 26 and October 29. Monday’s exit cancelled nearly all of it.

Adding Friday’s $233.7 million outflow, IBIT shed $639 million in two sessions. Across all funds, withdrawals topped $1.04 billion.

The selling began a day after the biggest crypto hack on record hit Binance. TRM Labs attributed the $6.36 billion theft to TraderTraitor, a North Korean hacking unit. The haul included 18,270 BTC drained from a Binance hot wallet.

Caution before the November 3 US midterm elections and a sell-off in tech stocks added pressure.

Still, the exits remain small against IBIT’s $65.9 billion in cumulative net inflows since its January 2024 launch.

The bigger question is whether redemptions persist. Spot ETFs have become the main channel connecting institutional sentiment to BTC’s price. Sustained outflows would test the support level flagged in the November Bitcoin outlook.