BlackRock's Bitcoin ETF Posts Record Outflows Amid Market Turbulence

In a significant development for the cryptocurrency market, iShares Bitcoin Trust (IBIT), also known as BlackRock's Bitcoin ETF, witnessed $1.3Bn in net redemptions during the week of June 22-26.

This represents 72.9% of the total $1.79Bn that left the US spot Bitcoin ETF complex that week, indicating a reversal of the narrative that institutional demand is driving the market.

The outflows from IBIT are particularly noteworthy as it is one of the largest funds in the space, with its size making it impossible for other parts of the market to ignore.

The macro backdrop for these redemptions includes a stronger-than-expected US non-farm payrolls print, which reduced near-term Federal Reserve rate-cut expectations and pushed Treasury yields higher, making fixed-income alternatives more attractive relative to Bitcoin.