BlackRock accelerates crypto ETF sales with record outflows

BlackRock saw $1.26B in IBIT outflows at a discount, signaling a major investor exit and ongoing weakness in US Bitcoin ETFs.

BlackRock has significantly increased the sale of its cryptocurrency exchange-traded funds (ETFs), with combined outflows from Bitcoin and Ethereum ETFs surpassing $1.21 billion over the past week. The most notable transaction was a $1.26 billion block sale from the iShares Bitcoin Trust (IBIT) on May 26, where 29.21 million shares were traded off-market at a 2.3% discount. This suggests a rapid exit by a major investor. Analysts at NYDIG have dismissed the possibility of an arbitrage strategy, noting the absence of unusual activity in bitcoin futures on CME and the substantial discount involved. This development highlights ongoing weakness across US Bitcoin ETFs, which saw net outflows exceeding $1.52 billion during the same period. BlackRock's continued sales could influence both the price and institutional sentiment in the crypto market, given its expanding role in the Bitcoin ecosystem.